11.03.202006:38 Forex Analysis & Reviews: Forecast for EUR/USD on March 11, 2020

EUR/USD

At a time when, seemingly, in China, the victory over coronavirus is close, the number of infected people increased by 30% in Europe in one day(!). According to the latest data in Italy, 463 dead and 9172 infected (724 recovered). In Italy, entry and exit from the country have now been prohibited. The number of cases are as follows: 30 dead and 1231 infected in Spain, while 30 dead and 1412 infections in France. The situation is better in the United States: 27 dead and 702 infections.

Yesterday it became known that US Treasury Secretary Stephen Mnuchin began to hold daily meetings with Fed Chairman Jerome Powell. It is very likely that politicians are preparing new incentives for the economy, perhaps even a full-fledged QE. The general situation is not in favor of the euro. Even yesterday, European stock indices ended with a huge negative, and US indices in a firm positive: EuroStoxx50 -1.66%, DAX -1.41%, Spanish IBEX35 -3.21%, Dow Jones 4.89%, Nasdaq 4.96 %

The euro lost 160 points on Tuesday, Monday's gap is closed. The price is now facing a signal support of 1.1240 ( the high on December 31), the overcoming of which opens the way to the MACD line on the daily scale chart (1.1085).

The MACD line (1.1235) is located near the signal level on the four-hour chart, which raises its significance. Consolidation under the MACD line opens up a short-term prospect of a decline. Price taking at 1.1085 (the MACD line on daily) opens up a medium-term prospect of a decline.