The euro hit the lowest since November today, touching 1.3428 after Germany’s IFO business sentiment survey fell to the lowest since October.
The decline stalled at the 200-week moving average at 1.3435. The latest round of weakness started two weeks ago after the 55-dma fell below the 200-dma, an event called a death cross. Another death cross will likely take place in the next week or two with the 100-dma sliding toward the 200-dma.
EURUSD daily
The next levels of support are 1.3400, the 100-week MA at 1.3344 and the November low of 1.3296. But one concern is that oversold signals are flashing with the daily RSI at 26.
I took profits on a EUR/USD short today and will wait for some kind of hawkish signal from the Fed before piling back in.
