EUR/USD has plummeted to a new low of 1.1845. According to DBS Bank Strategist Benjamin Wong, EUR bears remain in command, with trendline support at 1.1765 being the first target.
“The market will now be looking for tapering indications at the European Central Bank (ECB) policy meeting on 22 July, as well as the FOMC meeting a week later on 29 July. Overall, the Federal Reserve’s relative hawkishness should exert pressure on the ECB, pushing the EUR down as we approach the Jackson Hole Symposium on August 26-28. The first level of support that we would look at is the trendline support at 1.1765.”
“There is the breadth of a 1.1883-1.1493 support area, where EUR might dip inside before mounting a fightback because the technical indicators are stretched and do not warn a massive waterfall slide.”
“Expect a test of the 100-month moving average at 1.1782 and trend support at 1.1765. Extend the fall from 1.2349 to 1.2266 to look for Fibonacci milestones at 1.1692 and 1.1619.”/n
