EUR/USD eases off 11-year low after sustained slide

<p>EUR/USD (daily chart shown below) has traded in a tight consolidation since the currency pair made its latest plunge last week down to an 11-year […]</p>

EUR/USD (daily chart shown below) has traded in a tight consolidation since the currency pair made its latest plunge last week down to an 11-year low of 1.1460.

That low was just shy of reaching its key downside support target around the 1.1400 price area.













Since the 1.4000-area high reached in May of last year, EUR/USD has followed a steady and accelerating bearish trend that has seen the currency pair fall by more than 17% thus far within the span of around eight months.

The beginning of the year began with a dramatic gap down in price that broke below the 1.2040 support target, which was the pivotal low established back in mid-2012.

Price action then continued to plummet, making an exceptionally bold bearish move late last week. This move hit and broke below its 1.1640 downside support target before dropping further to hit the noted 11-year low of 1.1460.

With the recent dramatic drops since mid-December, the prevailing trend for EUR/USD continues to be significantly bearish, despite technically oversold indications.

The key downside support targets for this downtrend reside around the noted 1.1400 level, last hit in late-2003, followed to the downside by the 1.1100 and 1.0800 levels.

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