Is the consolidation over? EUR/USD loses support

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After starting with a significant gap lower, EUR/USD got comfortable but was unable to close the gap. Not so impressive US data and then a better batch left the pair in range.

Perhaps this consolidation has ended with EUR/USD falling to new lows below support. The pair is trading at 1.3164 at the time of writing, a new 11 month low.

The last important US figure was positive: the highest consumer confidence since 2007. It’s important to note that the US dollar is moving higher also against other currencies, with GBP/USD under 1.6550 and USD/JPY moving above resistance at 1.0410. The euro has its own weaknesses.

1.3175 was a an old support line that proved its strength also recently as the lower bound of the range. The pair was unable to close above Friday’s lows of 1.3220.

EURUSD August 26 2014 falling to new lows euro dollar slide

Below 1.3175, the next level of support is the round number of 1.31, which worked as resistance back in 2013. Resistance awaits at 1.3220, the upper bound of the range.

For more, see the EURUSD forecast.

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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.

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