EUR/USD falls to the lowest since November 2003 – guide

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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:

EURUSD lowest since November 2003 technical monthly chart for euro dollar taken January 15 2015

Update: EUR/USD < 1.15 – surrenders to huge pressure and trips stops

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.

More:

In our latest podcast we analyze the SNBomb, do an ECB Preview, discuss US wages, dive into Saudi costs and the look at the Aussie

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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 the 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.

3 Comments

  1. Yohay, thank you for your work for all traders.learning lot from your writings.

    i am new in trade jumped excitedly in EURUSD based on PIV, Support & Resitance. had good return on 1.15 and when it crossed, i started to look for 1.14 with new trade and got stuck badly with a hudge minus showing. any suggestion mate? Thank you.

    • Thanks for your kind words. I believe that the long term direction of EUR/USD remains down, but forex is never a one way street.