#forexbreakfast focus forex (eng)
The main event of the past week was the general depreciation of the Euro, including the other Northern European currencies. The Norwegian krone was particularly affected by the drop in oil prices, as was the ruble. The risk-off climate recorded a decent performance against the dollar and the yen. Worst performance of the Eur / Usd exchange rate in recent months. The exchange depreciated for five days in a row, recording -1.8% at the weekend. The main reasons are the steady worsening European epidemiological situation, which is followed by various lockdowns and, the ECB meeting has left room for further monetary stimuli. The Eur / Gbp exchange rate returned to drop. Now it is in a stalemate, on the one hand, the new lockdown and on the other the positive developments in the Brexit theme. Subdued week also for emerging currencies. In place of the worst currency of the week, we still find the Turkish lira that seems to depreciate non-stop, followed by the ruble. Weak week for Latam currencies, except for the Chilean peso and the South African rand.
Eur / Usd
As already mentioned, the past week was characterized by a generalized weakening of the Euro. In particular, against the dollar, it broke the support positioned at 1.1750 to aim for the 1.1661-1.1603 area. This level remains to monitor. Exceeding it could project the exchange rate towards the 1.1430 area. The short-term oscillator highlights an oversold situation, while the medium-term oscillator leaves room for a further decline. On the upside, the resistance to be monitored is 1.1781 followed by 1.1826.
Eur / Gbp
After three consecutive weeks on the rise, the exchange rate returned to decline, losing 1.10% at the weekend, returning to the 0.90 area. If that support will be broken, there would be space for a descent towards area 0,8873 and subsequently 0,8711.Short-term oscillators show a divergence that could lead to a rebound. In this case, the area to be monitored would be 0.9150.
Eur / Jpy
Consequently the depreciation of the euro and the strengthening of the yen, the exchange rate fell to around 122, (the lowest level since July). The break of the support located at 122.38 opened the way to the 120.70 area. The Short-term oscillator signals an oversold situation. This could lead to a pause in the bearish movement. On the upside, area 123.35 and subsequently area 125.77 remain to be monitored.