In the past week, the market has reacted strongly to the high number of Corona virus infections due to China adjusting the calculation. Although the number increased significantly, these were previously suspected cases that could not be verified due to the lack of testing equipment. When WHO arrived, the Chinese side was able to verify these cases. Now, when most of the suspected cases have been verified, China started pumping money into the economy to stimulate and try to get things back to normal. US stock indexes created new highs this week and it seems that US investors are not worried about coronavirus infection.
Meanwhile, the Euro has had a week of pressure due to the bleak basic information, trade stagnation due to coronavirus. The EURUSD currency pair has dropped more than 2% in the past 2 weeks. It is worrying for Euro speculators that economic data could get worse this week. The temporary GDP index of the fourth quarter of Germany and the Eurozone is likely to miss the weak growth of 0.1%. There are also Euro zone industrial production data that could be worse by -1.5% in November.
On the Daily and Weekly charts, the EURUSD pair broke all important support levels, showing strong downward momentum, towards the next week's Demand zone at 1.0616. Before breaking out of the 1.0899 resistance area, EURUSD has accumulated to create a slight bullish day and form the Supply zone right here. So this week we can wait to sell at the confluence with Suppy 1.0899. If the Supply breaks, EURUSD could continue to move to the 1.099 zone. The trend of this pair remains in a strong downtrend with the trendline falling from 1.1238 to 1.1095. Once this trendline is broken, the upward momentum will be considered.
Stop loss 1.0930
Take profit 1,075
Recommendation: This is just a Trading Idea. For more accurate analysis, you should incorporate other indicators that you have mastered. In particular, always focus on capital management methods to prevent any possible market situation.
Author: Nguyen Chi Thanh
Do not forget to like and share this article okay?