The EUR/USD dropped below the former double-bottom of 1.1300. Cascading stop-losses sent the world's No. currency pair down to 1.1268 in a quick movement. The pair is trading at the lowest level since June 2017, a 17-month low.
1.1235 is seen as the next downside target for the EUR/USD, followed by 1.1220. Above 1.1300, resistance awaits at 1.1330.
The US Dollar is gaining ground, extending the moves seen last week. The Federal Reserve maintained its hawkish stance last week. While Fed Chair Jerome Powell and his colleagues left the interest rate unchanged, they left the door wide open to a rate hike in its December meeting.
Also, concerns about Brexit also have an impact. Reports about a sharp disagreement in the UK government weighs on the Pound and sentiment and also helped push the EUR/USD over the critical line.
Here is how the move looks on the EUR/USD 15-minute chart. Click on the image to see a live chart:
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US traders are enjoying a long weekend and are off today. Slightly lower liquidity also had an impact on the move. Later in the week, US inflation and retail sales data are set to impact financial markets.
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