EUR/USD gains bearish momentum and could lose the 1.1700 threshold

The EUR/USD pair is trading at fresh weekly lows in the 1.1750 price zone as demand for the greenback prevails. Pressure mounts towards 1.1700 as a continued increase in coronavirus contagions in Europe weighs on the shared currency, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The euro continues to weaken as the second wave of coronavirus continues to spread in the Old Continent, leading to more restrictive measures, the latest coming from Italy.”

“The EUR/USD pair is trading around the 50% retracement of its latest daily advance, with the 38.2% retracement of the same rally providing resistance around 1.1800.”

“The 4-hour chart shows that technical indicators head firmly lower within negative levels, supporting additional declines ahead. The same chart shows that the 20 SMA is turning south well above the current level, while the price is crossing below a flat 100 SMA.”