Search ForexCrunch

EUR/USD lost the battle to hold on to critical support at 1.3145. The pair is now lower. The straw that broke the back of the camel was a remark from Angela Merkel.

The German chancellor rejected raising the upper limit of the ESM bailout fund.

This joined a previous report about troubles implementing the recent EU Summit agreement, which already felt short in providing a near-term solution.

EUR/USD is now at 1.3115, 30 pips under, and this breakout needs to be confirmed. This line was defended for almost a full day, after the fall seen  yesterday (see 7 reasons for the downfall)

If this breakout is indeed confirmed, the next significant support line is the psychologically important 1.30.

For more on the common currency, see the EUR/USD forecast.

Update: The breakout is confirmed – EUR/USD is now at 1.31.

Update 2: This is a free-fall – EUR/USD is already at 1.3060. The bears are in control as stops are triggered.