EUR/USD is dropping despite no helicopter drops of cheap euros and no further measures in the near future. It’s the story of the US dollar. The greenback is enjoying a comeback across the board: this includes majors and minors as well and going hand in hand with a slide in US stocks, which in turn are hit by weak earnings reports in leading tech companies.
For EUR/USD, this means a loss of the near-term support at 1.1250 and a slide to the next line of support which is quite close: 1.1220. So far, this line holds up and there are only a few hours until markets close for the week.
Nevertheless, if the pair should find some extra weight ahead of the weekend, the next line of support is quite strong: 1.1150: it worked both as resistance in October and support in recent weeks.
Resistance awaits at 1.1250 followed by 1.1335, which worked as support when the pair was trading on higher ground. The high for the week, seen in the peak of Draghi ´s press conference was 1.1395, just under 1.1410.
Will we see further weekend gaps after the previous ones? Next week we have the Fed and also the BOJ to rock markets. Have a good weekend.
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