I last spoke about the EUR/USD back in November,
Forex Analysis Report 11-11-18…More Pain In Store For The EUR/USD (Update)
On the daily chart, when price came down to the weekly pivot, it formed a demand zone, but price couldn’t close above the previous highs. Thus, the chart suggests, price will breached this daily supply and continue to fall.
This past Thursday, the European Central Bank (ECB) announced the issuance of a new round of long-term loans to eurozone banks.
NOTE: this is the third issuance of cheap loans known as targeted long-term refinancing operations (TLTROs) to eurozone banks.
and extending a pledge to hold off on any rate increases until at least the end of the year. The ECB also said they won’t increase interest rates until early 2020. Many analysts and investors were expecting a dovish statement, but I think they were caught off guard by additional relief being offered by the ECB.
Needless to say the Euro sold off against the US dollar on the news. So how low can the EUR/USD go, lets go to the charts.
Price is currently bouncing off of the weekly demand at 1.1170.
However, the momentum is still downward. Thus, if the weekly demand at 1.1170 is breached, look for price to head to the next weekly demand at 1.0875.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.