EUR/USD: Biased lower, 1.17 level at risk

EUR/USD is hovering around 1.1750 after hitting a fresh September low of 1.1719 as the second coronavirus wave in Europe keeps the shared currency under pressure. The pair is technically bearish and could lose the 1.1700 threshold, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The shared currency remains under pressure amid mounting coronavirus-related concerns, as several countries have announced new restrictive measures.”

“Powell is set to reiterate the Fed’s outlook on the economy, that is showing a ‘marked improvement,’ but also that the future is highly uncertain and depends on controlling the coronavirus pandemic. His prepared speech also notes that the need for more help from Congress, which continues to disagree on a coronavirus aid-package.

“In the 4-hour chart, the EUR/USD pair remains below all of its moving averages, with the 20 SMA losing bearish momentum but holding below the larger ones. Technical indicators, in the meantime, remain near their daily lows although without clear directional strength.”