Uncertainty is Strengthening Safe-Haven Currencies

After witnessing the euro depreciating against the dollar for about 2 years, the negative interest rates in the eurozone and the deepening of the global economic slowdown due to the intensifying Covid-19, have made the eurozone an attractive safe-haven currency against the dollar. Apart from the macro-trend, technical analysis have shown that the euro has broke above the long term MA as well as its major trendline. Hence, indicating a potential reversal from its depreciation. For now, we would expect a retest of the support at 1.11900 before prices rising up to potential levels of 1.13900 and 1.15300.