EURUSD has stayed around 1.15 since last week with no sign of breaking above or dropping below. At the beginning of the London session, Euro sank below 1.15 again. Will it dig deeper this time around?
The price of EURUSD has strongly been influenced by a very strong Dollar this year. The year long bearish move ended at 1.13 in August but one price level has stood as a battle ground - 1.15. Technically, it's believed that if EURUSD should drop below 1.15 significantly, the bearish move would continue to test 1.13 low. Amid EU's rejection of the Italian budget deficit, it's believed this currency pair could drop further as the Dollar strengthens more. Price broke below 1.15 yesterday and retraced back to it in today's Asian session. A significant break below 1.1460 is now needed to confirm the continuation of the bearish run.
EURUSD: Technical Overview and Important Price Levels
In the last update, we expected the bears to continue with a significant break below 1.15. The chart below was used.
The chart below shows price bounce from 1.1460 to 1.1550. The bullish momentum lacks strength to push price ahead as it now points downside, below the 1.15 support. In the larger degree, 1.15 and 1.13 are the two most significant support levels. If price breaks below 1.15, the next target is 1.13. Upside, 1.155 and 1.1595 are important intraday resistance levels while 1.17-1.18 is the most important larger degree resistance zone. A break below 1.1480-1.1460 intraday support levels could lead to more bearish move as price aims 1.13.
The chart below shows price between 1.1550 and 1.1460 with 1.15 acting as a sort of median level.
Yesterday, price dropped to 1.1460 before retracing to 1.15 and now back close to 1.1460. A break below 1.1460 should see price crashing toward 1.13 handle. If price rallies above 1.15 once again, we might see the formation of a double bottom reversal pattern. Price could rally toward 1.155 and above if this happens.
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