- The dollar soars before falling in the bags and general fear.
- The euro is approaching a year’s low against the dollar and falls to lows of six against the Swiss franc.
- EUR / USD erases recent gains and remains under pressure.
The EUR / USD erased Thursday’s gains and extended the slide even closer to the 1.1262 floor, the lowest since 2020. The pair fell back to 1.1280, after starting the day above 1.1360. The sharp fall occurs in a context of risk aversion that was triggered by the announcement of a new general lockdown in Austria due to COVID.
From Monday Austria will enter a general confinement as a result of the increase in cases of coronavirus. This is in addition to warnings from other countries in the region. Fears of more restrictions weighed on traders and led to a pullback in equity markets and a rise in safe haven assets.
Among currencies, the dollar, the yen and the Swiss franc benefited the most. EUR / CHF plummeted to 1.0445, the lowest since July 2015. Government bond yields of developed countries fell.
The EUR / USD gave up what it had gained on Thursday. Although it is trading around 1.1300, trying to move away from the recent floor, the dominant trend remains bearish and coincides with the intraday direction. The 1.1330 zone has once again become a resistance to break, and above it is 1.1360 / 70, which needs to be left behind to enable a rally to 1.1400. To the downside, a confirmation below 1.1285 would expose the area of ​​the 1.1260 low, the break of which could lead to an acceleration to the downside.
Technical levels
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