Figure 1: The EURUSD currency pair on the daily chart
The price created a new low at point B. This is another new low and confirms that the pair is in a downward trend. EMA 50 is below SMA 100, which also confirms the downward trend. The price reflected the first resistance on Fibonacci level of 61.8%. Currently the price is approaching the support in point B. The price is now on the level as it was on February 20, 2020, from where it gradually increased to a point A. We will see if it turns up from here again. To confirm the change of direction, it would be good to wait for some bullish reversal candlestick pattern.
Further developments in the euro will be influenced by information on support for the euro area economy, which may be available at the end of the week. If an agreement is reached, this could be a positive signal for the euro.
At the same time, however, data from the US on unemployment insurance will be reported on Thursday. We will see if there is another record increase in this indicator and whether investors will still trust the dollar, which could then push the euro to lower levels again.
The closest resistance is in the band 1.1150 - 1.1170. Strong support is in the band 1.0630 - 1.0680.
The USDJPY currency pair
The yen is historically considered a safe haven, so in times of crisis we often see that it is strengthening, so the USDJPY should fall. However, this was not the case last week when the Japanese yen depreciated against the US dollar. This pair sets two world reserve currencies against each other and it turns out that the US dollar is currently preferred to the yen. However, due to bad US data, a turnaround could occur soon.