Breaking: EUR/USD crashes below 1.09 as German inflation slows– lowest in 2 years

Yohay Elam FXStreet

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.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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