EUR USD poised for next move lower

EUR/USD (daily chart shown below) has rebounded modestly after having hit a new 11-year low at its downside target of 1.1100 earlier in the week.

That low was the latest culmination of an eight-month downtrend that has seen the currency pair 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 this week.

EUR/USD 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.

That follow-through went on to plummet past progressively lower support targets, including 1.1875, 1.1640, and 1.1400, before hitting and bouncing off the key 1.1100 target.

The current bounce from this 1.1100 support level reached a high just above 1.1400 resistance before retreating for the time being.

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 target to the downside resides around the 1.0800 level, last hit in September of 2003. In that event, EUR/USD could be on its way towards targeting parity (1.0000).

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