EURUSD is trading higher in today’s Asian session amid risk aversion sparked by Trump’s speech and WHO’s announcement. The currency pair rose from its lows at 1.1249 to a session high of 1.1332. As of this writing, EURUSD is trading at 1.1306.
Coronavirus Outbreak: US Declares Travel Ban, WHO Classifies the Disease as a Pandemic
US President Donald Trump held a press conference this morning to address concerns about the coronavirus outbreak in the US. With it, he announced a travel ban from those coming from Europe except for the UK for 30 days. He also asked Congress to increasing funding to Small Business Administration and the Treasury to suspend tax payments of about 20 billion USD. This move was anticipated early on in the week and it would seem that the details fell short of expectations. Equities markets failed to rally and USDJPY traded lower following the news.
Meanwhile, with the coronavirus not showing any signs of stopping, WHO finally declared the infection as a pandemic. The term means that the outbreak has reached a global scale. With this new label, the health organization hopes that governments would step up their efforts to contain the disease.
ECB Rate Statement Due Today
At 12:45 pm GMT today, the ECB will make its interest rate decision. It is widely expected that the central bank would cut rates by 10 basis points and possibly increase its asset purchase program. Most major central banks have already eased stimulus and all eyes are now on ECB President Lagarde, expectant that it will be their turn.
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EURUSD Outlook
The technical setup on EURUSD provides both bullish and bearish arguments for the currency pair ahead of the ECB statement.
Bearish: Head and Shoulders
On the hourly time frame, it can be seen that the currency pair made lower highs after a series of higher highs. Consequently, a head and shoulders chart pattern has materialized. This considered as a bearish reversal signal and a break below the neckline support at 1.1250 could hint at a bigger sell-off. EURUSD could soon fall to last week’s lows at 1.1120.
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Bullish: Trendline Break and Bullish Flag
On the other hand, when you connect highs of March 9 and March 11, it becomes obvious that the currency pair has broken resistance at the falling trend line. This, in turn, suggests that buyers are priming to push price higher.Zooming into the 15-minute chart, we can see that further bullish confirmation. EURUSD has consolidated with a downward slope after it surged up the charts. A bullish flag has then materialized which is considered as a bullish continuation pattern. If there are enough buyers to push EURUSD above today’s Asian session highs at 1.1332, it could be headed to its March 9 highs at 1.1480 next.More content
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