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EURUSD breaks through bear trigger

FOREX
  • With concerns about the increase in Covid-19 cases in China and potentially increasingly-wide lockdowns in the face of the China's zero Covid policies the dollar has benefitted as risk appetite has fallen across market participants.
  • EURUSD has broken through two important support levels - the April 14 low at 1.0758 and the April 24, 2020 low at 1.0727. These breaks confirm a resumption of the downtrend on a technical basis, and see the next major support at 1.0636 (the low of March 23, 2020).
  • European assets are being hit harder than US assets in general, with European equity futures down generally 1.5-2.0% on the day while US futures are down 0.5-1.0%.

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