EUR/USD Under 1.40 – 5 Reasons
Forex Bits

EUR/USD Under 1.40 – 5 Reasons

After breaking below the 1.4030 support line, Euro/Dollar continues lower and has just pierced through the round number of 1.40, eyed by many. It is quickly approaching the next support line. There are multiple reasons:

  1. Weak German PMI: The initial numbers for Europe’s powerhouse were significantly weaker than expected.
  2. Spain’s political mess: the ruling party lost regional elections. Protests against all parties continue on the streets. Spanish bond yields are just under the all-time high of 5.60%
  3. Italy’s got a credit warning over the weekend. This is serious – Italy is Europe’s second largest country.
  4. Greek re-profiling: The Greek prime minister ruled out restructuring but not re-profiling. This game of words only delays the inevitable default.
  5. Oil prices are falling – this helps the US dollar.

The next support level is at 1.3950, followed by more significant support 1.3860.

For more on the Euro, see the EUR/USD forecast.

Yohay Elam

Yohay Elam

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 a 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.