The euro fell to 1.1770 in Asian trading on Wednesday.
Today’s macro agenda (GMT 3)
17:00 Canada: BoC interest rate
17:30 US: EIA weekly petroleum inventory status report
18:00 Canada: BoC press conference
The price action has slipped from the balance line to 1.1770. The euro tumbled amid media reports that the German government is mulling a two-week nationwide ‘lockdown light’ with plans to close everything except basic shops/services, kindergartens and schools. Merkel is expected to meet with regional leaders and announce the lockdown.
Today French President Emmanuel Macron will address the nation and will also announce a lockdown. The UK is also lobbying for a new lockdown.
At the time of writing, EURUSD was trading at 1.1771. The European currency is hovering close to the trendline starting from the 1.1689 low. A number of support levels are located in the range of 1.1758-1.1764. Despite record numbers of Covid-19 cases, EURUSD is expected to recover to 1.1810, where market participants will await the ECB's decision and Christine Lagarde's press conference.