The EUR/CZK will bounce back from a major support line

The 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.