After another bearish week markets seem to calm down a bit as we can also see in the VIX (volatility index) which keeps going lower. Europe has now become the epicentre of the coronavirus pandemic, with Italy’s death toll surpassing that of China. Despite the dire days ahead, the EU central bank has done its bid to stimulate the economy. European markets bounced Friday morning in response to ECB stimulus and as EU governments adopt a “whatever it takes” approach to mitigating the economic hit from the coronavirus pandemic.
As the ECB is widening the bond purchasing program however, we might see a weaker Euro to come. With another major support level having been broken we would focus on selling into the current rally at next resistance. We’d like to sell at 1.0820 with SL at 1.0950 and open TP.