EUR/USD outlook: The euro falls to new 20-year low after Fed, risks deeper drop
EUR/USD
The Euro remains heavy in early Thursday’s trading and hit new marginally lower 20-year low, following 1.3% drop on Wednesday.
The sentiment was soured by growing geopolitical tensions, with hawkish Fed adding pressure on the single currency.
The US central bank raised rate by 0.75%, in line with wide expectations and signaled further strong hikes to push interest rate to 4.4% by the end of 2022 and to 4.6% in 2023 that is seen as continuous pressure on Euro.
Bears pressure psychological 0.9800 support, eyeing Fibo projections at 0.9736 and 0.9657, ahead of target at 0.9601 (Sep 2002 low).
Technical studies show overall bearish structure, with near-term action weighed by Wednesday’s large bearish candle (the second big daily drop this month).
Limited adjustments on oversold conditions are expected to offer better selling opportunities, with former low at 0.9864 (Sep 6) offering initial resistance and extended upticks to stay below broken Fibo 76.4% at 0.9942.
Res: 0.9847; 0.9864; 0.9900; 0.9942.
Sup: 0.9800; 0.9736; 0.9700; 0.9657.
Interested in EUR/USD technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
