Breaking: EUR/USD crashes below 1.09 as German inflation slows– lowest in 2 years
|EUR/USD has dropped below 1.09, trading at the lowest levels since May 2017. The currency pair triggered stop loss points on the way and quickly hit a low of 1.0884 at the time of writing.
The next levels to watch are 1.0820 and 1.0780 – gap lines from April 2017. The previous low of 1.0905 turns into resistance and the one before it – the former double-bottom of 1.0926 – is the next level to watch.
Here is how the move looks on the four-hour chart. It is essential to note that the Relative Strength Index is flirting with the 30 level – which indicates oversold conditions.
Weak German inflation figures have triggered the latest move. The European standard HICP inflation slowed down to 0.9%, below 1% expected. It joins disappointing Consumer Price Index numbers from France and Spain.
The continent's largest economy has likely entered a recession. It contracted in the second quarter and data for the third quarter point to further weakness, especially in the manufacturing sector.
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