February 9, 2023

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EUR/USD falls to its lowest since November last year as downside pressure continues

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EUR/USD falls to a low of 1.1658, its lowest since November 2020

EUR/USD D1 29-09
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The euro has come under relatively strong pressure since the start of September and the downside momentum looks to run further, in spite of the fact the dollar is not showing much poise amid a light retreat in Treasury yields today.

But as warned earlier in the day, it is all about the technical picture for both EUR/USD and USD/JPY at the moment and the former is starting to come into play now.

The drop below the key support region at 1.1664-66 puts the focus on key support near 1.1600 next and a drop below that spells real danger for an accelerated fall.

We still have to wait on a daily close today to get confirmation of a downside break to validate such a potential move but given the momentum in the past few weeks, it is tough to try and bet against sellers at this point in time.

Just be wary that the drop here could lend itself to broader bids in the dollar against the other major currencies as we navigate through the sessions ahead.

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