EUR/USD has breached key downside support and may extend to the downside as the list of EUR-negatives seem exceptionally long at this point, Terence Wu, FX Strategists at OCBC Bank, informs.

See: EUR/USD to slide to 1.1750 on a break below the recent 1.1835/31 low – Commerzbank

Key quotes

“Spreading third-wave pandemic cases, renewed lockdowns, spillovers from Turkey, Chinese retaliatory sanctions on EU entities, ECB’s Lane warning of a difficult 2Q 2021 … the list of EURnegatives appear exceptionally long as this juncture.” 

“The breach of the 200-day MA (1.1863) adds a further negative from a technical perspective. Look for further downside for now, with the multi-session target potentially a distance lower at 1.1690/00, then 1.1610/30 (Sep/Nov 2020 lows).”

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