Within the last week, the Euro rallied versus the US Dollar to a high above 1.1480 providing speculation that it’s downside was limited. However yesterday’s NY close below 1.1330 was the first sign that it wants to continue it’s former momentum to new lows. If this were solely a EURUSD story, we might give pause, however the price action favors Euro crosses alike.
Looking at Euro cross pairs, we can see that the selling pressure has reemerged, specifically in EURGBP, EURCHF and EURJPY. If one were to go back just to the end of October, there would be parallels with these cross pairs and EURUSD price action.
As the chart shows, the more recent daily lower high confirmation puts this pair on course with a 1.1150 target in the near future and maintains it’s longer term outlook of 1.0990 which we posted about in October.
