FX.co ★ Trader's Diary: EUR/USD on 02/12/2020, Euro's fall will be limited

EURUSD: Market conditions - downward trend.

The euro met support at a long low of 1.0880 (the low of early October 2019).

The euro can turn right at this level and close the big reversal pattern up, breaking above 1.1100 and further to 1.1240

In case of a downward movement, one should not expect a big trend:

1. The Fed will not raise rates. The ECB is finding it increasingly difficult to maintain soft policies.

2. Ahead of the Presidential elections of the United States, Trump appears to be a favorite. But the situation starts to become less predictable for the elections and this might affect the dollar.

3. The main topic. The Euro is already too cheap right now due to its continued fall. Thus, it will be purchased for insurance against dollar risks.

But for now, we keep euro sales from 1.0990.