EUR/USD to plummet towards Fibonacci marker at 1.1695 – DBS Bank

Bearish momentum returns in a broad risk-off as EUR faces a negative suite of higher US yields amid the threat of fresh lockdown pressure, as the EU-UK vaccine war simmers on. EUR/USD has broken below the 200-day moving average at 1.1863, placing the pair in a corrective pull towards a major Fibonacci marker at 1.1695, as reported by DBS Bank. 

See: EUR/USD to suffer further downside as all themes play against the euro – OCBC

Key quotes

“Following last Thursday’s (18 March) Federal Open Market Committee’s deliberations, it is clear that warmer growth forecasts can be expected, and primarily stacked in favour of the US, with the recent passing of the USD1.9t American Rescue Plan bill. Persistent, firm US yields should hurt low yielders such as EUR vs USD.”

“EUR is not getting favours from the slower vaccination progress on the continent, and fresh lockdown precautions on fears of a third COVID-19 wave hitting Europe (and simmering thoughts of a EU-UK vaccine war) as risk-off themes dominate.”

“EUR/USD is in good stead to aim for that all important 1.1695 Fibonacci target, and even a tease of 1.1603 double bottom zone as bearish momentum returns.”