European markets gave up early gains on Tuesday with the fast-spreading coronavirus putting the continent in shutdown mode. Meanwhile, the US President also warned that the current situation could lead to a recession in the US as well as the rest of the world and he recommended to avoid gatherings of more than 10 people.
Given the current situation, it really comes down to a matter of which economy is facing the worst recession prospect. We can already see that the initial weakness in the USD has already faded, so the EUR looks to be the biggest loser. Meanwhile, a reduced interest rate to similar EUR levels did not change anything for now and the common currency keeps weakening again. We, therefore, chose to SELL EURUSD at 1.1112 with SL at 1.1230 and TP at 1.0950.