FX.co ★ EUR/USD analysis for September 04 2020 - Broken rising trendline and potential for the further drop

Further comments by Saunders

BOE did not discuss negative rates in August meeting

• Review of negative rates is not finished
• Review will look at indirect effects on banks, lending

An interesting choice of word there by Saunders i.e. 'theologically' in the sense that his central bank beliefs does not exclude pursuing negative rates as an option at least.

I reckon even if they had strong reasons not to go there in the past, that may have changed considering the economic circumstances over the past six months.

Once again, this just adds more to the narrative that the BOE is almost likely to pursue this option down the road - especially once the economy shows more signs of cracking.

As I discussed in the previous review, the EUR is trading flat at the price of 1,1850 but with the potential for the downside break.

Further Development

Analyzing the current trading chart of the EUR/USD, I found that there is the breakout of the most recent rising trendline on the daily time-frame, which is sign that sellers took control from buyers and that downside opportunities are preferable.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Lean Hogs and Orange Juice today and on the bottom Lumber and VIX

Key Levels:

Resistance: 1,1865

Support levels: 1,1760 and 1,1710.