Price extends to the downside after break of key hourly MAs yesterday
Buyers were unable to keep hold of a move above the 1.1400 handle earlier today and the single currency is feeling the weight of further downside pressure now, slipping below yesterday's low of 1.1382 and touching its lowest level since 4 January.
Further support is seen around 1.1371 with the 3-4 January lows around 1.1340-50 the next region of support before the 1.1300-10 region comes into play.
The backdrop of a softer Eurozone economic outlook warranting a possible change to the ECB rate outlook is one of the major negative points for the euro as we begin the new year. And it's going to be a theme that will continue to set the euro back a couple of steps as long as economic data continues to support the case.
Right now, sellers are in near-term control as price sits well below the two key hourly moving averages and as mentioned yesterday, a break below that puts the near-term bearish bias back in place and reopens the case of the trading range between 1.1300 and 1.1500 again.
