EUR/USD pair is falling – mainly on the wave of the USD strengthening. After three days of declines we are approx. 115 pips lower, below the 1.3300 level. Currently the last bulls bastion (1.3290 – November 2013 low) is dynamically attacked and it is hard to forecast where the price can reach. Pivot Points may provide some help here – especially S3 level at 1.3250 (mid-September 2013 lows). Gigantic sale on EUR/USD dates back to May where price ineffectively attacked 1.40 level – since then pair fell around 700 pips!
At that time we also saw a significant change in the European Central Bank attitude – ECB started further loosening of its monetary policy. Currently, weak economic data – especially in Germany – are further discouraging investors when it comes to single currency.
Markets still await for today’s FOMC minutes (20:00CET). We may find that after recent hawkish statements, the Committee general attitude also has changed.
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