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.

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