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Forex Today: EUR/USD Keeps Falling

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

The EUR/USD currency pair continues to trend lower as it reaches a new 16-month low price below $1.1250.

  • The EUR/USD continues its long-term bearish trend as it falls to reach a new long-term low price. Odds are in favor of lower prices here over the coming days due to the strong trend. This move is driven by enhanced euro weakness after Cristine Lagarde, the ECB president, ruled out an ECB rate hike in 2022.

  • The Turkish lira fell by approximately 10% last week but seems to be regaining a little ground so far today. We are quite likely to see some further advance in USD/TRY over the coming days, but be aware that trading this currency pair can be expensive and volatile. It is falling with very strong momentum, currently averaging about 3% per day against the US dollar.
  • The US Dollar Index has become established above key long-term resistance, breaking out to reach a new 15-month high in a significant technical move confirming the long-term bullish USD trend. As long as the former resistance area now continues to hold as support, the technical outlook will look bullish for the US dollar.
  • In the Forex market so far this week, the Australian dollar looks to be the strongest currency, while the Japanese yen is currently the weakest.
  • The cryptocurrency sector dipped again yesterday. Bitcoin is trading well below the key round number at $60k. However there is much attention being paid to Avalanche (AVAX) which has surged in value over the past week to enter the top 10 cryptocurrencies by market capitalization.
  • It is a public holiday in Japan tomorrow.
  • Last week saw the fourth consecutive global weekly rise in new confirmed coronavirus cases after two months in which cases fell steadily.
  • It is estimated that 53.2% of the world’s population has received at least one dose of a coronavirus vaccination.
  • Total confirmed new coronavirus cases worldwide stand at over 257.8 million with an average case fatality rate of 2.00%. Cases are surging in Europe and some countries, notable Austria and the Netherlands, are implementing new lockdowns.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Andorra, Austria, Belgium, Chile, Cyprus, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Jordan, Laos, Liechtenstein, Netherlands, New Zealand, Norway, Poland, Slovakia, Slovenia, Switzerland, Trinidad, the USA, and Vietnam.
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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