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EUR/USD grinds down below 1.24 – heads for lowest close

EUR/USD continues its slide following fresh determined dovish words of ECB president Mario Draghi. The pair that traded just below resistance at 1.2570 earlier in the day is extending its falls and isn’t far from completing a slide of 200 pips from the peak on the day. Looking at the daily chart, we can actually see that the pair basically bounced off  downtrend resistance, mentioned in the EUR/$ weekly outlook:

EURUSD falling down November 21 on Draghi to the lowest close since 2012

In this fall, the pair reached the lowest levels since 2012 earlier in the month at 1.2358. However, at that time it closed well above these levels. It is now on the way to close below them.

Further support  below 1.2360 awaits at 1.2320 with much more serious support at 1.2250. On the topside, 1.2440 could offer weak resistance before the very round number of 1.25.

How low can the pair go? Next week’s inflation data could  provide a clue.

More:  EUR/USD: One More Leg Lower Before Flattening-Out In Dec – Citi

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.