- EUR / USD is losing more ground and is approaching 1.17.
- Coronavirus concerns underpin risk-off sentiment among traders.
- Investors expect a dovish message from the ECB on Thursday.
The persistent bias towards the safe haven universe drags the EUR / USD into the important containment zone near the 1.1700 level on Wednesday. The cross lost about 70 pips since the start of the day, sliding to fresh 9-day lows at 1.1717 recently.
EUR / USD Cautious Ahead of ECB Event
A combination of cautious trading ahead of the ECB’s monetary policy meeting (Thursday) and growing concern over the advance of the pandemic in Europe is hitting the single currency and the rest of its peers associated with risk on Wednesday.
The rebound in risk aversion comes together with the implementation of stricter restriction measures throughout the Old Continent to curb the spread of the coronavirus, which has already reached unprecedented levels in many countries.
EUR / USD levels
With the pair trading at the time of writing above 1.1734, losing 0.51% on the day, the next support appears at 1.1688 (monthly minimum of October 15) followed by 1.1612 (monthly minimum of September 25) and finally 1.1495 (monthly maximum of March 9). On the other hand, a breakout of 1.1880 (October 21 monthly high) would point to 1.1917 (September 10 high) on its way to 1.1965 (August 18 monthly high).
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Credits: Forex Street
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