EUR USD eases off 11 year low after sustained slide

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.

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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.