EUR//USD

For EUR/USD traders, the bears are getting ready to take on the scene with a high probability breakout to the downside.

• On the monthly chart, a retracement at least to the 38.2% Fibonacci level can be expected, on the heels of such a long and interrupter surge to the upside.
• On the weekly chart, a significant retracement was observed to the 61.8%, a key movement as it meets resistance – which would support the case for further downward movement.

News that might impact USD:

That being said, stay tuned for President’s Trump session with Fox News later today – I wonder if there are going to be any high impact words that might cause a shaking to the markets and even the Dollar!

News that might impact Euro:

• Rising coronavirus in Europe, particularly France and Spain (both countries have reported the largest number of new cases since April)
• The ECB seem to be waiting rather than charging head on with regards to the economy – which is understandable given the unprecedented time the world and particularly the economy is facing – leaving no clear clues as to how and when it will recover.
• ECB’s governing council have insisted that the ‘EUR 1.35 trillion package for the Pandemic Emergency Purchase Programme (PEPP) should be considered a ceiling rather than a target’