New 9 month low for EUR/USD following US housing data

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The good news from the US housing sector sends the dollar higher and EUR/USD tumbles below the previous support line of 1.3333.

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The low so far is 1.3325, exactly at an old support line, before 1.3333 was established as a bottom in August.  Update: this line is gone as well. The current new low is 1.3318.

The pair is now at the lowest since November 2013. And the next support line is the November 2013 low of 1.3295. Resistance comes at 1.3415, followed by 1.3450. The pair is trading within a narrowing downtrend channel, as seen on the daily chart.

EUR/USD was pressured down by weak GDP numbers last week, as well as yet another fall in German business confidence.

Here is how it looks on the chart:

EURUSD August 19 2014 new 9 month low for euro dollar technical 30 minute chart

We have heard from the president of the ECB Mario Draghi that the “fundamentals are in place” for a weaker EUR/USD. The pair is perhaps not at the optimal point for the ECB, but the direction continues to be down and steady grind lower is probably met with quiet praise.

We will hear from Draghi and from Yellen on Friday.

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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.

1 Comment

  1. mangesh walavalkar on

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    mangesh