It’s not looking too hot for the euro right now and we could be at a tipping point
We’ve dropped down close to the 1.1700 handle and the first bounce has been very small, managing to get to only 1.1710. FYI, there’s stops lurking through 1.1690.
The area around 1.1685/1.1700 has been a strong support level going back to July wwhere it was former resistance. A proper break here and we could see a nasty drop, initially down to the low 1.16’s.
The 17 August low could provide some support on the way down but it doesn’t look anything special. There’s better looking support down around 1.1610/15 and then the 100 DMA at 1.1585. That gives the euro a far bit of support in a 30 odd pip range around the big figure.
I’m still long and still happy to hold but a move down towards 1.15 will have me reassessing. And, just for the record so you know we wear our hearts on our sleeves here at ForexFlow, I was stopped out for -26 on my USDCAD short earlier. I also want to give a big-up to my colleagues H and K (it’s like alphabet soup around here) for their great trades of late. They are true trading professionals.