Last week's push in the USD strength led the EURUSD to breach 1.15000 crucial monthly support. As things stand, its not looking good for EUR on both technical and fundamental point of view.
TECHNICAL ANALYSIS
After the weekly candle closed convincingly below 1.15000 crucial monthly support, the path to the next low at 1.11700 remains clear and with near zero obstacles. The descending channel might likely act as a guide/pathway to 1.11700 and the weekly 50 EMA would likely act as a strong dynamic resistance in assisting the EURO falling towards it. Have a look at the main chart to get a clear picture of the technical analysis behind this analysis
FUNDAMENTAL ANALYSIS
What caused the breach of 1.15000 support? well the US inflation report last week very much did the job single handedly. Furthermore, the divergence in tightening monetary policy between FED and ECB remains quite distant. This would likely make it easier for the EURUSD to fall further.
All in all, the EUR is likely to suffer more and more! The pathway to 1.11700 remains clear with least obstacles, thus making it likely to HIT in the coming weeks.
TECHNICAL ANALYSIS
After the weekly candle closed convincingly below 1.15000 crucial monthly support, the path to the next low at 1.11700 remains clear and with near zero obstacles. The descending channel might likely act as a guide/pathway to 1.11700 and the weekly 50 EMA would likely act as a strong dynamic resistance in assisting the EURO falling towards it. Have a look at the main chart to get a clear picture of the technical analysis behind this analysis
FUNDAMENTAL ANALYSIS
What caused the breach of 1.15000 support? well the US inflation report last week very much did the job single handedly. Furthermore, the divergence in tightening monetary policy between FED and ECB remains quite distant. This would likely make it easier for the EURUSD to fall further.
All in all, the EUR is likely to suffer more and more! The pathway to 1.11700 remains clear with least obstacles, thus making it likely to HIT in the coming weeks.
