There’s no mercy for the common currency under the dollar rally: the November 2013 low has been broken and the pair now trades at the lowest since September 2013, at 1.3292 so far. Update: 1.3284 is the new low. It is forming as a break, not only a dip.
The last straw in the euro’s back was the publication of German producer prices, which certainly showed weakness: prices dropped 0.1% contrary to a flat reading expected.
However, this follows on a dollar rally that we’ve seen in the latest hours. The dollar began moving forward on the strong housing figures and didn’t wait for the FOMC Meeting Minutes and Janet Yellen’s Jackson Hole speech.
The next support line is at 1.3250.
The chart shows that the pair is following towards the bottom of the narrowing downtrend channel:
Beyond 1.3250, the next line below the 1.32 line we have the 1.3175 level. For more, see the EUR to USD prediction.
The next thing on the agenda is the FOMC meeting minutes.
