EUR/USD looks to settle a dramatic week around 1.1300

The corrective slide in the EUR/USD pair from a new eight-month high of 1.1356 lost legs near 1.1290 region, as the bulls now consolidate the upside around 1.1300, looking to close a dramatic week with a 2.35% gain.

The recovery in the main currency pair from multi-year troughs of 1.0776 gathered steam this week after the coronavirus led economic concerns escalated alongside its count globally and propelled the US Federal Reserve (Fed) to cut rates by 50bps to combat the virus impact.

The emergency Fed rate cut triggered panic across the financial markets instead of lifting the market confidence and pushed the investors to seek safety in the US bonds. The flight to safety in gold and US Treasuries sparked a massive selling in the global stocks and US Treasury yields, with the 10-year benchmark’s rates registering a historic low of 0.674% earlier on Friday.

Given, that markets are fulling pricing-in another Fed rate cut at its March 18 monetary policy meeting. Meanwhile, the European Central Bank’s (ECB) easing stance to combat the virus impact is still on the cards, leaving a monetary policy divergence between the Fed and ECB that adds to the downside in the greenback while underpins the sentiment around the shared currency.

Meanwhile, stronger-than-expected US Non-Farm Payrolls data did little to stall the dollar slump, as the infectious disease-driven broad risk aversion continued to emerge as the main market driver on the final trading day of the week.

EUR/USD technical levels to consider