EUR/USD falls to a low of 1.1918 to start the session

EUR/USD H1 15-03

The dollar is holding slightly firmer footing to start the day, helped by a decline in the yuan earlier, though the rest of the market is keeping steadier in general for now.

The euro is among the laggards as worries are start to creep in about a third wave of virus infections sweeping across the region. Italy looks set to enter into lockdown and the numbers out of Germany in the past few days have been less than encouraging.

Put that together and that is pushing EUR/USD lower to start the day with the pair slipping past key near-term support levels from the key hourly moving averages @ 1.1930-43.

There is some minor support from the Friday low @ 1.1911 but a breach below the key hourly moving averages will see sellers seize near-term control of the pair after having seen the 100-hour moving average (red line) hold at the end of last week.

That puts some added scrutiny back on the 1.1900 level potentially with the 9 March low @ 1.1836 a key support level to watch in case the downside extends. Adding to that is the 200-day moving average nearby @ 1.1842.

For trading this week, all eyes will be on the bond market and the Fed policy meeting. That will play into dollar/risk sentiment but the euro itself may find it tough to get off the floor if virus worries continue to blow up moving forward.

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