EURUSD Analysis: Weak due to TRY exposure

Dukascopy Bank Team Dukascopy Bank SA

EURUSD

The common European currency has lost considerable 2.13% against the US Dollar during the last two sessions. Traders have pushed the rate lower due to fears of the Euro's exposure to the crisis-hit Turkey.

By Monday morning, the rate had plunged to a fresh 13-month low, being supported by the monthly S3 at 1.1365. In addition, the bottom boundary of a newly-drawn channel is likewise located there.

Technical signals are pointing to a recovery in this session, as shown by gradually-recovering indicators. In this case, daily gains should be capped near the 55-hour SMA at 1.15.

However, traders should still take into account that Turkey may still cause some downside pressure on the Euro before the expected appreciation actually takes place. A possible target is the psychological 1.13 mark.

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1652
2. R2 1.1594
3. R1 1.1503
PP 1.1446
1. S1 1.1354
2. S2 1.1296
3. S3 1.1205

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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