EUR/USD breaks down to new 11-year low

<p>EUR/USD (daily chart shown below) has broken down below its recent 1.1100 low that was hit in late January to establish a new 11-year low. […]</p>

EUR/USD (daily chart shown below) has broken down below its recent 1.1100 low that was hit in late January to establish a new 11-year low.

This new low confirms a continuation of the sharp bearish trend that has placed heavy downside pressure on the currency pair for the past ten months, since the 1.3993 high was reached in early May of last year.

Before plunging to its new depths, EUR/USD had been entrenched in a triangle pattern consolidation that was finally broken down in late February, prompting the subsequent sharp decline that has continued to its current targeted lows.

EUR/USD daily chart


Having broken down below 1.1100 support, establishing this new long-term low, EUR/USD continues to be pressured substantially to the downside.

A further continuation of the strong downtrend should seek the next major support target to the downside around the 1.0800 level, last hit in September of 2003.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.