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EUR/USD: a negative scenario

EUR/USD: a negative scenario

Information is not investment advice

EUR/USD met resistance at 1.1280 last week: the euro made 3 unsuccessful attempts to break higher. Then the currency pair traveled lower, below 1.12. The fact that it broke below the 1.1280/1.1200 range on H4 indicates that it will likely follow through and go another 80 pips down targeting the area of 1.1120/00. The decline below 1.1180 (June low) should trigger a further selloff. This idea is in line with the weaker euro ahead of the European Central Bank’s meeting later this week.

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