EURUSD Slide Continued as Sellers Take Control

Key Highlights

• Euro was crushed after the ECB aftermath, as sellers continued to take the EURUSD pair lower.

• There was a sharp downside move noted in EURUSD, which took the pair lower by more than 250 pips.

• Today, the German IFO business sentiment index will be released by the CESifo Group, which is forecasted to remain stable at 108.5 in September 2015.

EURUSD Technical Analysis

The Euro traded sharply lower this past week after the ECB’s indication of more QE in December 2015. The Euro sellers were seen in control, which took the pair below an important support area of 1.1200. The pair traded as low as 1.0994 where it just managed to find buyers.

There was a flag pattern formed as well before the pair continued its slide. There is a chance of one more such pattern, which may ignite another downside reaction in the EURUSD pair. No doubt, there is a lot of bearish pressure on the pair, and it continues more losses might be on the cards as there is currently no reason for buyers to step in.

If the pair attempts to correct higher from the current levels, then an initial resistance could be around the 23.6% Fib retracement level of the last drop from the 1.1350 high to 1.0994 low. Any further gains might be a good sign for buyers that could take the pair towards the 50% Fib level.

On the downside, a break below the last low of 1.0994 could ignite more losses in the near term. The most important support in that situation for buyers may be at 1.0900 where there is a chance of sellers struggling.