After hovering in range early in the week, the pair made another move down and so far it manages to cling onto support at 1.34. It completely erased the hammer pattern that began forming last week, and looks to hit new lows.
The reports of new, severe sanctions against Russia joined the better than expected consumer confidence in the US that provided support to the dollar across the board. As the really important data from the US (ADP NFP, GDP and FOMC all tomorrow) is about to pour out, perhaps EUR/USD could bounce from these levels if the really important data doesn’t live up to expectations?
The focus will temporarily shift to Europe tomorrow for some economic indicators and not news from behind the former iron curtain: Spanish GDP and more importantly German inflation is the pre-show to the big news from the US.
Break or bounce? In any case, here is how the recent EUR/USD deterioration looks like on the daily chart:
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