The euro had its opportunities to recover, but the overwhelming pressure from a strengthening dollar and weak German data finally pushes the pair to a new 14 month low. Apart from the weakest business confidence in 15 months, the echoes of the poor TLTRO operation last week also weigh on the euro. In addition, another poor jobs report from France also contributed to the fall.
EUR/USD slipped to 1.2811, below the previous low seen earlier in the week and late last week and continued downhill. It is in a new 14 month low.
Update: the pair continues grinding lower, biting a few pips at a time and is already below 1.28.
Update: a better than expected new home sales figure in the US pushed the euro even lower.
The round number of 1.28 serves as weak support as the pair broke it and is already be eyeing the really strong support line of 1.2750 – this held the pair several times in 2013.
Further support awaits at 1.2660, where uptrend support began and was later broken. Resistance awaits at 1.2820, followed by 1.2870.
The dollar is showing strength also against commodity currencies but not so against the pound and the yen. The euro certainly has vulnerabilities of its own.
Here is how the downfall looks on the chart. For more levels, events and analysis, see the EURUSD forecast.
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