The EUR/USD pair is falling today as the number of coronavirus cases continues rising around the world. The EURUSD is trading at 1.2185, which is a few pips above the intraday low of 1.2165.
What’s happening: There are two primary themes in the market today. First, the number of coronavirus cases in China and other European countries has continued rising. In fact, according to Reuters, more than 11 million residents of Hebei province in China are currently in lockdown. Millions more are in lockdown in European countries.
Second, the EUR/USD is also falling because of the current political crisis in the United States after last week’s crisis. Today, Democrats are expected to start impeachment proceedings against Donald Trump. Yesterday, they received the backing of Pat Toomey, a Republican senator who was an ally of the president.
Finally, the EUR/USD is declining because of the weak nonfarm payroll numbers released last week. The data showed that the American economy lost more than 140,000 jobs last month. This increased the possibility of more stimulus in the near term.
EUR/USD technical outlook
On the four-hour chart, we see that the EUR/USD pair has been in a downward momentum. It moved below the ascending trendline and the 50-day and 25-day exponential moving averages. Also, the Relative Strength Index (RSI) have continued to fall. Therefore, in the near term, the downward trend will continue as bears target the next support at 1.2100.