Technical Analysis: EURUSD aims key support-line amid fresh risk-off, eyes on US CPI
The fresh wave of risk aversion takes clues from Hubei's increased coronavirus cases, based on new methods, as well as more numbers of cases registered abroad, this has added strength to the US dollar versus its European counterpart. Also pleasing the bears are the ECB comments that signal the central bank as limited firepower if situations deteriorate from her, which seems likely considering the latest Eurozone numbers.
As a result, the EURUSD dips further towards a horizontal line connecting February/March-2016 lows to January 2017 high, around 1.0830/20. However, the quote's further downside is likely to be restricted by oversold RSI conditions, if not 1.0700 is widely expected.
On the contrary, recovery from the current levels may confront November 2019 lows near 1.0980. However, EURUSD prices could not lure buyers unless successfully clearing 61.8% Fibonacci retracement of its 2017-18 up-move, close to 1.1185/90.