EUR/USD is now losing another small support level on the way down: 1.3450. This opens the road to the round number of 1.34. This is a fresh 8 month low.
The euro has been on the back foot for quite a while, descending, taking a pause and continuing lower. The bounces have been in the form of “dead cat bouncesâ€, implying that the pair has more room on the downside.
Speculation about a rate hike in the US coming sooner than later has been the main driver, but the focus will soon shift to some European data with the flash PMIs for the month of July – the current month. French data is expected to remain under 50 points, reflecting contraction, while German data is predicted to remain just above 50 points, reflecting growth.
Here is how it looks on the chart:
The lowest level so far has been 1.3437. Below 1.34, significant support awaits at the round number of 1.33. Weak resistance is at 1.3450, followed by more serious resistance at 1.35.
For more levels, see the EURUSD prediction.
