EUR/USD falls towards multi-year lows

<p>EUR/USD (daily chart shown below) has tentatively broken down below a trading range consolidation that had been in place for the past month. In doing […]</p>

EUR/USD (daily chart shown below) has tentatively broken down below a trading range consolidation that had been in place for the past month. In doing so, the currency pair has once again approached its recent 11-year low of 1.1100 that was hit in late January.

Shortly after that low was hit, EUR/USD rebounded briefly to a high of 1.1533 in early February. Price action then quickly retreated into a low-volatility consolidation that had persisted until Thursday’s drop below short-term 1.1270 support.

EUR/USD daily chart


Currently trading only slightly above January’s multi-year low, the currency pair continues to be pressured significantly to the downside within a sharp downtrend that has been in place since its long-term high just short of 1.4000 in May of 2014.

Having made a tentative breakdown below the month-long consolidation range, EUR/USD could soon be poised for a further break to new lows.

If the currency pair continues its descent to break down below the noted 1.1100 low, 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.