EUR/USD forecast for November 09, 2020
European Central Bank (ECB) President Christine Lagarde has a speech today that will talk about the next steps the ECB will take to help the economy recover from coronavirus’ effects.
It’s an important test for the Euro to exceed 1.19000. In the last couple of attempts, it failed but bounced and fell to 1.16000 to support. Looking at the dollar index chart, the dollar is currently staying above 92.00. It will probably not be able to stay there for long because the pressure is high. The American elections are not officially over yet, and investors do not want to rush until everything is legal and confirmed.
Technically, one should be careful and monitor how the consolidation around 1.18700-1.19000 will take place. If the Euro goes up, our first target maybe the previous high of 1.19200, and then the next 1.20100.
The previous week, many European countries decided to close due to the sharp increase in the number of new coronavirus cases and the worsening epidemiological situation. Among those who decided on stricter measures and curfew are Germany, Austria, Italy, France, Spain, Belgium, Great Britain, Greece, Croatia, Belarus, and Monaco.
The pandemic continues to take its toll globally. The U.S. set a record in reporting over 100,000 new cases of coronavirus in a single day. On Thursday, the world reported over 600,000 new infections and about 8,700 deaths.
Still, the sentiment of risk could soon undergo a turnaround when the elections are officially decided or when the coronavirus’s numbers and growth return to the front line. Whenever elections are defined, the chances are high that the country will finally get a second stimulus package.
Economic indicators released last week were generally optimistic and indicated that the most relevant economies were far below pre-pandemic levels. The road to recovery is slow, and with the latest figures on COVID-19, it seems it will take even longer.
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