EUR/USD falls from 1.1370 to now near the 1.1300 handle

EUR/USD H1 22-03

As I'm writing up the post, EUR/USD is continuing its fall with the lows now touching 1.1304. It's a massive setback for the single currency where economic data was seen as on the road to recovery before this hits. That will surely knock the wind out of the sails of the euro and right now we're going to focus on economic worries once again.

The bright spot in the report earlier is that the services sector is still holding up but it isn't going to take away from the fact that German factory activity is basically slumping towards recession-like conditions at this point.

The other factor weighing on the single currency is the fact that German bond yields are slipping further after the report as well. 10-year yields are down by 3.4 bps to 0.007% currently and is on the verge of touching the big zero.

For EUR/USD, support is now seen at the 1.1300 handle with some minor support also lurking around 1.1280-90. With near-term bias turning more bearish, it could precipitate a further fall in the pair in the sessions ahead.

Update: Price now breaks below the 1.1300 handle to touch a low of 1.1289.