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
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