Source: ForexYard
The EUR is down 3.5% versus the USD since Tuesday’s high. This morning the EUR/USD briefly tested 1.35. The big round number is a key psychological level, but trying to pick a bottom in the latest EUR slide is like trying to catch a falling knife.
A push below the 1.3500 level was brief, though it may be too early to call the EUR/USD oversold. Short term technical indicators continue to move lower and there may be more room for the pair to fall. There is only modest support on the way down to the October low of 1.3145 and the weekly chart may hold the clues.
Should the 1.3500 level fail to hold, the 100-week moving average comes in at 1.3310. There is also potential support from a rising trend line off of the June 2010 and October 2011 lows which is found at 1.3290. Should the EUR/USD attempt to form a base, additional selling pressure may be seen at 1.3600.
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