On Wednesday, Euro quickly dropped, breaking through 1.1600 causing bulls to lose confidence, dropping to a new low of 1.1589 in more than a year. The strong risk aversion sentiment in the market pushed up dollar which puts pressure on Euro. The world’s major central bank governors warned that even if the current price surge may still be temporary, the supply constraints that hinder global economic growth may still worsen, keeping inflation high for a longer period. The impact of the epidemic on the global economy has disrupted supply chains on all continents, leading to shortages of goods and services around the world.
From a technical perspective, Euro’s daily candle is bearish, and the downward trend is obvious. It is unlikely for the bulls to pick up in the short term. In H4 graph, BOLL turned downwards, MACD accelerated, and the indicators were bearish across the board. Overall, prioritise Sell within the fluctuation zone, do not consider Buy. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1.1590.
Resistance：1.1640-1.1680-1.1750
Support：1.1590-1.1570-1.1550
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