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EUR/CZK

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Covid pushes downAll Euro area is being swept by the second wave of coronavirus. Czech republic is no different. Cases topped 114,005 and the daily new infections are going parabolic. That would mean they will need to enforce some sort of lockdown strategy that will, in turn, affect their economy. Technically speaking I see a bearish channel in which the pair is currently trading. Unless the pair breaks the channel headed for higher highs, I keep having a negative view on this one. ***As usual, not a trading advice, merely my view for informational and educational purposes only***
Short
by SteveEnnom
Positive news from the eurozonePositive news from the eurozone is buoying the beloved single currency against the Czech koruna. Bears will have trouble trying to push the pair downwards because the euro finally receives good news from its economic activities. The euro to Czech koruna trading pair should climb towards its resistance before the second half of the month starts. The move will help bullish investors maintain the dominance of the 50-day moving average against the 200-day moving average in the trading sessions. Moreover, The EU statistics agency announced earlier today that it believes that consumers have immediately returned to shops in May after the lockdowns were eased. The agency said that it estimates a sharp rebound in sales on the month following sharp declines in March and April. Aside from that, a survey found that investor morale in the bloc is starting to gradually recover after the coronavirus pandemic struck the region harshly.
Long
by Financebroker
The EUR/CZK will bounce back from a major support lineThe pair will bounce back from a major support line, sending the pair higher towards a key resistance line. Czech Republic had its biggest GDP decline for the decade on Q1 2020 where it posted -3.3% growth. The OECD expects Czechia to further decline in the coming quarters to become the fifth most infected country by the coronavirus pandemic in Europe. Forecast for the full year was at -9.6% on optimistic view and -13.2% if the country’s COVID-19 cases had its second wave. Meanwhile, a 7.7% economic recovery in 2021 is expected by analysts. The four spots above Prague in the list of most infected countries were the current and former members of the European Union. The UK was at the top spot followed by Italy, Spain, and France. The 2nd, 3rd, and 4th spots were members of the single currency bloc. However, the intervention of the EU’s economic powerhouse, Germany, is expected to keep the single currency afloat.
Long
by Financebroker
1
Bears are looking to avoid another upward reversal from EUR/CZKBears are looking to avoid another upward reversal from the pair and are determined to bring the pair lower towards its support. Unlike other currencies in the region, the Czech koruna has been significantly lagging behind in terms of performance against the euro. The main reason for its prior weakness is the negativity around Czech bonds. Earlier this month, the Czech Finance Ministry reportedly sold about 9.7 billion Czech korunas of three bonds, significantly lower than the previous sales. The Czech Republic has seen a huge spike in borrowing with the demand in the country’s debt market high following the previous rate cuts from the central bank. The main factor that will help the Czech koruna now is the news about the country reopening its economy and its borders. The rate of new cases and even deaths for the coronavirus in the Czech Republic has significantly declined, and now the country wants to return to normal.
Short
by Financebroker
EUR/CZK will fail to break down from a “Falling Widening Wedge”The pair will fail to break down from a “Falling Widening Wedge” pattern resistance line. The European Union is due to publish major reports today, February 27. Among these reports were European Business Climate and European Consumer Confidence. The two (2) reports posted negative results on the previous month. These figures reflect the current economic status of the largest trading bloc in the world. In addition to the weak figures on the two (2) reports were the declining Eurozone M3 Money Supply report. Data shows that M3 (coins, notes, cash convertible assets, and short-term and long-term deposits) declined by 5.0%. Meanwhile, the bloc still has a sluggish inflation result. The weak M3 figures will drag the single currency in coming sessions. Meanwhile, the low tax burden for each household in Czech Republic is one (1) of the lowest in the European Union The highest was Germany at 38.3%.
Short
by Financebroker