EUR/USD dips below double support

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The news on an upcoming deal in Washington is certainly boosting the dollar. Senate leaders have reportedly reached a deal, and a speedy process to approve it is awaited.

On this background, EUR/USD has dipped below the double support line: the uptrend support that was a clear separator since June, and the lows the pair reached last week. So far, the break isn’t confirmed. Will the break be confirmed after US politicians confirm the deal? Here is how it looks on the chart:

EURUSD dips below double support October 16 2013 technical view forexFurther support is at 1.3450 and 1.3416. Resistance is at 1.3570, a line that the pair encountered earlier in the day.

In Europe, inflation was confirmed at low levels and this also weighs on the single currency.

This all began as EUR/USD struggled to advance from consolidation.

As aforementioned, without a fully confirmed deal, the pair will find it hard to dig deeper. The deadline for the debt ceiling is October 17th. A deal is expected to reopen the government and delay the debt ceiling until February 7th.

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About Author

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.

9 Comments

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  7. Bahram Soltani on

    Hi Yohay Elam
    Like all the time perfect and valuable info.
    Really giving me big picture of market
    God Bless You,

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