Current levels are the lowest since December last year when price was at a low of 1.0523. Today the lowest we have is 1.0581 and the pair has been having difficulties since that low.
EUR bulls find it very hard to bounce off current levels even though this level is a very strong support that marks a triple bottom in the long-term.
The responsibility for the sharp drop goes to FED Chair Janet Yellen who stated yesterday that a raise is very likely to happen in December. Market participants understood this as a "done deal" and hurled to the US Dollar.
If that level does not hold the bearish pressure then the next one is seen at multi year low at 1.0462 made in March 2015.
Chart: EUR/USD D1
That is an impressive drop.
ReplyDeleteIt found support at 1.0580, but I doubt that's the end of the move to the downside.
ReplyDeleteHuge drop for the pair.
ReplyDeleteGreat analysis as usual.
ReplyDeleteThanks for such an informative article.
ReplyDeleteAnd no bottom in sight!
ReplyDeleteVery steep drop.
ReplyDeleteShort-term correction doesn't affect dominant bearish trend.
ReplyDelete