The EURUSD continued its decline yesterday, giving up another 120 pips against the US dollar from Friday’s close. That brings the total loss to 590 pips since the pair surged last week ahead of the results of the U.S. elections.
Aside from the breadth of the recent move, the price action has been relatively controlled, dare I say predictable. After closing below the 1.0950 handle last week, the pair retested this level as new resistance before losing additional ground on Thursday.
In a similar (predictable) vein, yesterday’s session found a bid at 1.0710, a level that I’ve had on my chart for over a year. It’s also the current 2016 low, or at least was until sellers pierced it by a couple of pips during Monday’s session.
If things continue to play out in an orderly fashion, traders can watch for a selling opportunity at the 1.0820 resistance level. This area has been a key influence for the pair since April of last year.
Below 1.0820, the next horizontal support level comes in at the December 2015 low at 1.0515. A break below that would expose the multi-year low at 1.0460.
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