The euro is facing some strong winds from home and abroad
While I’ve been away presenting at the MrTopStep Open House trading event, EURUSD has continued to suffer. It’s trying to chew through support right around a pretty strong area of 1.1690/1.1700 and it’s making some progress, trading down to 1.1684. This is one of those levels that’s an area, not one number. I i suspect that we’re going to see some stops run if 1.1680 breaks, and that could send us quickly down to the 1.1660/70 area and the Aug/Oct lows.
the 1.1660/70 could be a biggie if it breaks because there’s not a lot of Pa under there to pick any levels from. We might see some support around 1.1645/50 but if there’s a good amount of stops through 1.1660, it could be a quick trip to low 1.16’s. Check here for the other levels in play.
As I mentioned above, the euro is suffering from two things casting a shadow. The market’s obvious disappointment in what the ECB has delivered, and hot news from the US on taxes and the Fed chair. That mean’s there’s a high risk we’re going to see a potentially significant down move soon, now the much anticipated ECB has kicked the can for another 9 months (well it’s more like 11 months if you consider it’s October that market got this news). As always, let the charts do the talking and not your heart.