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.

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