EURUSD continues to eye the 2020 low

Traders continue to work the  EURUSD 
EUR/USD

The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars.  Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others.

The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars.  Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others.
Read this Term price toward the 2020 low at 1.06347. The low yesterday reached 1.0696 and closed near lows at 1.0701. The low price today reached 1.06684 after trading to a high of 1.0737 in the Asian session today. Yesterday the price moved below the April 2020 low of 1.07265. The break back above that level earlier today should have led to more upside momentum, but buyers turned sellers in the price started to rotate back to the downside.

Going forward, a move below the 2020 low would take the EURUSD price the lowest level since April 2017.

Drilling to the hourly chart of the EURUSD below, the traders push higher in the Asian session taken the price back above the April 2020 low at 1.07265. However, the price high remained well below the next targets near the 1.0757 area (home to the April 14 and April 19 lows in the swing high from yesterday after the break lower – see red numbered circles and yellow area). The move below the swing lows from yesterday at 1.0707 1.0696 have been able to stay below that area. It would now take a move above the 1.0707 level to give the buyers some comfort. Absent that and the buyers are simply not winning.

As I type the pair is making a new session low at 1.06629.