EURUSD – Will New Low Trigger Broader Decline?

EURUSD – Will New Low Trigger Broader Decline?

The euro has taken a turn lower against the dollar at the end of European session, falling to its lowest level since June 24 ,? when it tanked on the news that the UK has voted to leave the EU

the pair had established a relatively tight trading range during the four weeks following the result - between 1.10 and 1.10 - and it seems that the constant pressure on the range of support in recent days proved too much for the bulls

Source -. OANDA fxTrade Platform

A break of this support level could trigger another push now. lower, with the next test coming around 1.0910, the low of June 24

OANDA MP - weak PMIs Hit Sterling (Video)

Although this can provide some support, the break of 1.10 could indicate a larger downward move was triggered, with 1.08 to 1.0820 as the next major support area for the pair.

for the moment, the pair found temporary support around 1.0970, the low of June 27, but I think this could prove temporary, with the break of 1.10 potentially adding to the bearish sentiment. One day - and therefore weekly -. Close below 1.10 could still add to this

Despite reduced their short exposure, OANDA customers remain net short on this pair as it has reached a new low for four weeks

There also appears to be a number of long and short open orders around 1.0950 which could suggest that this will be an interesting level.

to get access to historical positions and backlog of tools above, visit OANDA Forex Labs.

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