EUR/USD - H1
The pair had tried to stage a recovery yesterday, but fears around the COVID-19 situation in Europe kept in check and then, US President Biden's pick for the Fed top spot, dealt another blow to it.
The US President, announced on Monday his intent to nominate Mr. Jerome Powell, for a second term as Chair of the Board of Governors of the Federal Reserve System. This boosted the greenback, since he is seen as less dovish compared to Ms. Brainard, who was the main runner-up for the job.
As such, the Euro dropped to fresh 2021 lows, as we had warned form yesterday's analysis and extended those lows earlier today. This has opened the door for larger decline towards 1.1184, but the next major support appears remote at this stage (1.1099).
The common currency steadies as the European traders enter and a recovery effort could be likely. However, we still struggle to see how, at this stage, it can move beyond key 1.1290-1.1300 level.
Investors will now turn to a series of PMIs due shortly, while Wednesday contain a big number of potentially market-moving economic releases, ahead of US Thanksgiving day.
Past Performance: Past Performance is not an indicator of future results.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.