EUR/USD: Be ready for a slide below 1.0875

On Friday, I had pointed out about EUR/USD flirting withe the rising trend line support, which was put to test again today and was breached.

Here is the daily chart

EURUSD D1 (02-29-2016 1928)

At 1.0880, the spot is just a few pips short of 1.0875.

Given the weaker EZ inflation figure, i wont be surprised to see the pair break below 1.0875. Furthermore, the USD side of the story is strong again.

Plus, US stock futures are pointing to positive open and may react extend gains due to China’s rate cut surprise.

Hence, it is more likely to take out 1.0875 and drop to 1.0845-1.08 levels. EUR selling may gain pace as we head near to next week’s ECB meet

 

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s