EUR/USD is falling heavily, already 100 pips on the day. The weak inflation numbers are in the driver’s seat, but also other forces are coming together to push the pair lower, defying those who estimated that the pair is oversold and that a significant correction is just around the corner. Each support line has held only temporarily so far, but the pair may be approaching the ECB’s “comfort zone” that will provide more growth opportunities and higher inflation via higher import prices. Here are 4 reasons for this extended crash: Euro-zone inflation fell to 0.3% and core inflation to 0.7%. While both levels were already seen in 2014, they were never seen together. These are rock bottom levels for both. The US dollar is dominant across the board for quite a few weeks. From time to time, it takes a break, and then storms again. We are now amid a fresh storm, as also stronger currencies bow before the greenback. German unemployment: Germany reported a rise of 12K in the number of unemployed, worse than expected. If the locomotive of the euro-zone cannot ride on its won, who can? German employment data has been disappointing for quite some time. End of quarter flows: The end of a trading week often sees stronger moves than usual. At the end of the month, this can be even worse. At the end of a very turbulent quarter, the situation further intensifies. These are the last hours of a quarter that saw huge moves. Where can this stop? The ECB will probably feel comfortable when EUR/USD is back to the 1.20 to 1.25 area, where it traded in mid 2012. A lower value against the pound would also help. EUR/GBP is already close to the post crisis low of 0.7750. The new low is 1.2587, just above support at 1.2587. Further support is at the very round number of 1.25, which is USD/EUR at 0.80. Resistance is at 1.2620 and much stronger resistance is at previous support back at 1.2660. For more, see the EURUSD forecast. 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. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next AUD/USD ends brief correction as it falls back to 0.87 Yohay Elam 8 years EUR/USD is falling heavily, already 100 pips on the day. The weak inflation numbers are in the driver's seat, but also other forces are coming together to push the pair lower, defying those who estimated that the pair is oversold and that a significant correction is just around the corner. Each support line has held only temporarily so far, but the pair may be approaching the ECB's "comfort zone" that will provide more growth opportunities and higher inflation via higher import prices. Here are 4 reasons for this extended crash: Euro-zone inflation fell to 0.3% and core inflation to 0.7%.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.