The Euro fell to its lowest level against the U.S. Dollar since August 12 on Tuesday extending losses from the previous session, as markets turned risk-averse over a surge of virus cases and new lockdown measures in Europe.
Although European equities opened higher on Tuesday, the dollar continued its ascent and riskier currencies fell, as new lockdown measures to combat a second wave of COVID-19 infections pose a threat to the global economic recovery.
At 12:27 GMT, the EUR/USD settled at 1.1741, down 0.0032 or -0.27%.
In Spain, the army have been asked to help fight a coronavirus surge in Madrid, while restrictions in other European countries were announced last week.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers edged through the last main bottom at 1.1737. A trade through 1.1872 will change the main trend to up.
The main range is 1.1371 to 1.2011. Its retracement zone at 1.1691 to 1.1616 is the primary downside target. Buyers could come in following a test of this area.
The short-term range is 1.1711 to 1.2011. Its retracement zone at 1.1826 to 1.1861 is new resistance.
Daily Swing Chart Technical Forecast
An extension of the selling pressure through today’s intraday low at 1.1720 should create the downside momentum needed to challenge the main bottom at 1.1711, followed by a minor bottom at 1.1696 and the main 50% level at 1.1691.
Look for a technical bounce on the first test of 1.1691. This is also a potential trigger point for an acceleration to the downside.
On the upside, the first resistance is a minor 50% level at 1.1796, followed by the short-term Fibonacci level at 1.1826.