EUR/USD resumed its falls after trading in range and reached a new 2 year low at 1.2658, just below the previous lows and at the critical line where the uptrend began.
So far, there is no confirmation to the break.
Update: Breakdown is confirmed after inflation data disappoints.
It’s all the way down to 1.2601.
1.2660 is strong support as this is where the pair began the long term uptrend support that was recently broken. The pair hit this low point in November 2012, and started a long rise from there.
In the recent fall of EUR/USD, it stopped just short of this line, at 1.2663.
The new low is just under the November 2012 trough, and the lowest since September 2012. However, after the initial dip, the pair bounced back, so the break is still not confirmed. We get euro-zone inflation numbers soon.
Below this line, 1.2620 is the next support line, followed by 1.2587. Resistance awaits at 1.27, followed by the previous double bottom of 1.2750.
Here is the weekly chart, that shows that the pair dipped just below the November 2012 low. This is a very marginal break.
