The euro plummeted yesterday in the currency market and today is rising modestly, making a correction. The EUR/USD pair broke decisively to the downside on Thursday after moving sideways around 1.1350 during a week. The important support around 1.1260 was broken and price accelerated below.
Since yesterday’s American session the euro is recovering ground against the US dollar but at a slow pace and still seems under pressure, with probabilities of starting again a decline anytime, as technical indicators move away from oversold conditions.
To the upside, the 1.1260 is likely to stop the recovery and a price zone from where the euro could start falling again. If it rises above and holds it could extend to the upside. Monthly end flows could trigger surprise price action moves.
The long term bearish trend remains in place. To the downside, the immediate support lies at 1.1200 that already offered support during the Asian and the European session. A break lower would exposed yesterday’s lows at 1.1180. A continuation below could push the pair to test 1.1110; if broken we should start getting ready for fresh multi-year lows.
View Live Chart for EUR/USD
Since yesterday’s American session the euro is recovering ground against the US dollar but at a slow pace and still seems under pressure, with probabilities of starting again a decline anytime, as technical indicators move away from oversold conditions.
To the upside, the 1.1260 is likely to stop the recovery and a price zone from where the euro could start falling again. If it rises above and holds it could extend to the upside. Monthly end flows could trigger surprise price action moves.
The long term bearish trend remains in place. To the downside, the immediate support lies at 1.1200 that already offered support during the Asian and the European session. A break lower would exposed yesterday’s lows at 1.1180. A continuation below could push the pair to test 1.1110; if broken we should start getting ready for fresh multi-year lows.
View Live Chart for EUR/USD
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