EUR/USD to break below the 1.1700 level and reach fresh monthly lows

The EUR/USD pair is trading sharply lower, approaching the 1.1700 threshold, as risk-off fuels equities’ sell-off in favor of the American currency, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The number of new coronavirus cases in the Union these days continues to increase to record levels which largely surpass the peaks from March/April. Curfews have proved insufficient to slow contagions, and harsh restrictive measures are coming to several countries. Equities in the Union plunged, dragging alongside Wall Street’s futures.”

“EUR/USD trades at daily lows in the 1.1720 area, as the dollar keeps strengthening, and approaches this October low at 1.1688. The 4-hour chart shows that the pair has accelerated its decline after breaking below its larger moving averages, while technical indicators head firmly lower near oversold readings, all of which supports further declines ahead.”