EUR/USD Falls for the Fourth Day in a Row

EUR/USD Falls for the Fourth Day in a Row

23 March 2016, 19:38
Roberto Jacobs

EUR/USD Falls for the Fourth Day in a Row

EUR/USD printed a fresh daily low during the American session at 1.1159, hitting the lowest level since last Wednesday, when the Federal Reserve announced its decision on monetary policy. Afterwards, the pair bounced modestly to the upside, but the recovery was capped by 1.1185.

Currently, it trades at 1.1174/78, down less than 40 pips from yesterday’s closing price. It is the fourth daily decline in a row for the pair that has been moving with a bearish trend since Friday when it tested 1-month highs around 1.1340.

EUR/USD trimming post FOMC gains

The pair has fallen to the 61.8% Fibonacci retracement of the post FOMC rally and to the 38.2% of the rally that started after the European Central Bank meeting when it cut interest rate further and increase the massive purchase program.

Bearish channel

Price continues to move within a bearish short-term channel that is offering resistance around 1.1200. A break higher could strengthen the euro. While to the downside, the lower limit of the channel stands at 1.1130/40, area that could offer support if it extends the decline during the next hours.

(Market News Provided by FXstreet)

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