The pair is down 0.2% on the day again, with the low earlier briefly touching 1.1555. That is the lowest since 23 June as the euro continues to be hamstrung from the US-EU trade deal. The initial reception yesterday was that “phew, we avoided the worst case scenario” and that brought some relief to the currency. But as the dust settles, the backlash among European lawmakers is continuing with many labelling the deal as being not good enough.
Currently, the July lows at 1.1560-72 region is still playing a role in limiting the downside. But as the downside pressure persists, a drop below there will free up scope for the pair to tangle with a potential drop towards 1.1500 next. Though the 38.2 Fib retracement level of the swing higher since May is at 1.1537, I’d wager the 50.0 Fib retracement level at 1.1447 will be the bigger one to drop in the event of a further decline.
The euro drop today comes as the dollar is also keeping firmer still, with GBP/USD down 0.2% to 1.3330 on the day and AUD/USD down 0.1% to 0.6513. USD/JPY on the other hand is down 0.1% to 148.35 though.
This article was written by Justin Low at investinglive.com.
