EUR/USD is holding below its 200-day moving average at 1.1863 for the first time in ten months. Economists at TD Securities think a push below 1.1800 will see investors set their sights on a test of support around the once-familiar 1.1750 pivot.
See: EUR/USD to suffer further downside as all themes play against the euro – OCBC
Key quotes
“We note that the EUR trades below the 1.1836 support level after taking out the 200-dma (1.1863) on Tuesday. This puts our immediate focus on the familiar 1.1800 level that we last bounced off of in late November. “
“Below 1.1800 we think markets will set their sights on a test of support around the 1.1750 pivot. Recall that level acted as a strong attractor during much of the second half of last year.”
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