Panic is the brief and very precise word to describe what is happening currently. Coronavirus is again the main driver for the markets. The currency pair declined last week and has tested 1,1068 support area.

The ECB has left the interest rate at 0 levels and launched a temporary asset purchasing program. This was the main driver for EUR to develop the downtrend.

We expect the currency pair to develop its decline this week below 1,1068. The next target is 1,0870. However, if 1,1068 holds, EUR/USD may reverse upwards.