While the swing low could be ignored, the current slide of the euro is the real thing. At 1.1580, the pair is trading at the lowest levels since November 2003. The trigger is of course the shocking SNB decision to abandon the EUR/CHF, but this comes in the wider context of the upcoming QE program that is expected from the ECB in one week.
What levels should we be watching now? Here is a guide to the next big levels:
This is the monthly chart, with explanations below:
1.1640 was the low line in late 2005. The break of this level means that the pair is now at 11+ years lows.
On the way down, we have the very round level of 1.15, which is eyed by many analysts. Further below, 1.1373 was the low line seen in November 2003.
The next line is even more round: 1.10. It is followed by 1.0760, which was the low point in both July and August 2003.
Even lower, 1.05 is a round number and also a low line in March 2003. There is not much left between there and EUR/USD parity last seen in December 2002.
On the topside, we have the late 2005 low of 1.1640 is immediate close resistance. It is closely followed by 1.17, the launch value of the pair in 1999.
Further above, we have the previous double bottom of 1.1750, followed by weak resistance at 1.18. The 2010 low of 1.1876 is the last significant line of resistance before the round value of 1.20.
- 3 reasons to sell EUR/USD targeting 1.10 – Deutsche Bank
- SNB Action Hints At A Steady EUR/USD Drop From Here – Danske
- 3 hints from the SNB that ECB QE is going to be really big
- SNB also breaks the brokers – MT4 providers removing CHF quotes – slowly recovering