EUR/USD is falling below the support line that accompanied it since mid September. The line was later formed in late September and early October. The dip to a new low of 1.1120 is below this line, but this break is awaiting confirmation.
The Draghi effect (see the 5 blows) is certainly taking its toll and the does not seem nigh. The next support line is 1.1080 after the 180 pip fall that we’ve seen so far.
The round level of 1.10 provides more more support. The really critical line is 1.0810, which was the bottom of the post crash range. On the upside, 1.1215 is weak resistance and it’s followed by 1.1290 and 1.1340 – the old shoulder line.
EUR/USD had its share with false breaks. The most recent one came just last week, when the pair broke over the double top at 1.1460 and failed to reach 1.15. From there it was all downhill.