EUR/USD falls to a low of 1.1797 as we get into European morning trade

For bank trade ideas, check out eFX Plus

The euro is continuing to pull back further on the week after having touched 1.2000 on Monday, with the drop yesterday putting sellers back in near-term control on a break under both the 100 (red line) and 200-hour MAs (blue line).

The ECB is now a major focal point for euro traders ahead of the policy meeting next week, particularly after more jawboning from earlier today here.

This has put pressure on EUR/USD as the pair falls to a low of 1.1797 and is now testing the 1.1800 level as well as a near-term trendline support @ 1.1805.

Keep below those levels and sellers will feel more comfortable in chasing an extended drop, with further support seen closer to 1.1780 and then the 27 August low @ 1.1763.

As we look towards the ECB meeting next week, it may be tough to argue for a continuation of the euro’s sustained rise as there will be fears surrounding more jawboning by Lagarde & co. next Thursday.

That may be a signal for the dollar to also keep on the offensive for now, but tomorrow’s US jobs report will also add another risk element ahead of the weekend.

Source link