In the European market on Monday, there was a global sell-off, and funds poured into safe-haven currencies such as the USD. G10 currencies such as Euro and the GBP suffered obvious selling pressure. The Wall Street S&P 500 index recorded its largest single-day percentage drop in 11 months. The European Central Bank’s loose policy caused Euro to be under pressure unless it starts to raise interest rate. However, the current epidemic in EU and the economy and inflation are temporarily likely to cause monetary policy to be loose.
From a technical point of view, Euro’s daily candle has fallen for three consecutive days, and the market sentiment remains bearish. At present, 1.1700 is still the key support level. In H4 graph, bottom ladder is complete, the moving average form bearish divergence and the indicators are bearish across the board. Overall prioritize Sell position but don’t chase the position too much. If there is a breakthrough, trader can consider taking Sell positions. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1.1700.
Resistance：1.1750-1.1780-1.1810
Support：1.1700-1.1680-1.1650
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