Euro Below The 200SMA

The Euro has plummeted below the 200SMA and below 1.1900 in a massive US dollar rally that has spread among the financial markets and is affecting every major currency. The Sterling, Swiss Franc, Japanese Yen are all making losses as the US dollar has been rallying for some 3 months now.

Euro dipped below 1.19 on Monday and has been trading in uncharted waters ever since. The choppy trading is the result of disoriented market participants who are weighing in on the options whether to sell the Euro now that it's trading below the 200SMA or to buy it as this is a strong support point.

EUR/USD bulls could hope to recover the gains this month as the pair is massively oversold as indicated by the MACD and RSI.

Chart: USD/USD D1