EUR/USD fails to maintain rebound

<p>EUR/USD (daily chart shown below) has failed thus far to maintain its most recent rebound off the new 11-year low of 1.1100 that was hit […]</p>

EUR/USD (daily chart shown below) has failed thus far to maintain its most recent rebound off the new 11-year low of 1.1100 that was hit in late January.

The rebound pushed the currency pair up from that multi-year low to a high of 1.1533 just last week, before retreating once again.

This latest rebound occurs within a nine-month downtrend that has seen EUR/USD decline by more than 20% from its long-term high just short of 1.4000 in May of 2014 down to the noted 1.1100 low in late January.

The currency pair began to accelerate its decline at the outset of 2015 as it gapped down at the very beginning of the new year and followed through during the course of January by plunging further to the downside.



The bearish trend bias and downside pressure for EUR/USD continue to remain strong. If the currency pair continues its entrenched stair-step descent below 1.1100, the next major support target to the downside resides 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.