26 apr
2019
10:41
Markets
Euro Reaches a Minimum in the Last Two Years

The euro against the US dollar fell to its lowest level in two years. In the morning of April 26, 2019, the EUR/USD exchange ratio was 1.1145. According to DailyFX, there was a downward wedge on the chart, which, from the point of view of technical analysis, can demonstrate both the accelerated fall in the euro exchange rate and the trend reversal.

The exchange rate of the US dollar was supported by negative economic statistics. According to the Central Statistics Bureau of the Netherlands, from February to April 2019, the global trade fell by 1.9%. The drop was the biggest since May 2009. Problems in the global economy increase the chances of lowering the US Federal Reserve rates, which leads to an increase in the US dollar exchange rate.

According to DailyFX, the fall in the EUR/USD exchange ratio to 1.1110 will strengthen the downward trend, and the nearest resistance will be at the level of 1.1024. If the support is broken, the exchange rate will rush to 1.0778. To confidently reverse the downtrend, the EUR/USD ratio should return to around 1.1400.

Against the backdrop of a fall against the US dollar, the euro itself shows signs of recovery. This is due to the uncertainty of the Brexit conditions. In the morning of April 26, 2019, the EUR/GBP exchange ratio was 0.8631.