The 1.0760 line was of importance back in 2003, but only very temporarily held EUR/USD afloat in 2015. After the loss of 1.08, can we see also 1.07 go swiftly?
Another rush of dollar buying sent the pair to a new low of 1.0733, which is the lowest seen since April 2003 – almost a dozen year.
European data so far hasn’t been that bad: French industrial output rose by 0.4%, beating predictions for a fall of 0.2%. Also yesterday’s Sentix Investor Confidence came on top of predictions.
But so far, there are good reasons why positive euro-zone data cannot lift the euro.
We noted beforehand two specific euro related pressures: Greece, which is not dominating the news but is certainly back, and the beginning of ECB QE, which also has a negative impact, even if it was well known.
The bigger story is the strength of the US dollar: the greenback is moving higher across the board: AUD/USD hit a new low since 2009, amd USD/JPY is hitting new highs close to 122.
If the break under 1.0760 is indeed confirmed, it is quite hard to see any real support all the way to 1.05, which played a role back in those days in 2003. 1.05 is also a target for some banks, at least for the closer term. EUR/USD is also eyed by many.
Here is the chart:.
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