EUR/USD is flirting with key technical levels
The pair is now trading at 1.2208, after falling to a low of 1.2185 on the day. The range is still relatively subdued, but this is where things really start to heat up for both buyers and sellers.
At current levels, the pair still sits near the 100-day MA (red line) @ 1.2210 and the 8 February support level of 1.2212. At the moment, this is a crucial point of battle for both buyers and sellers. Here's why:
In the last two instances (November and December) the pair fell below the 100-day MA, it was held up by the long-term trendline support from April.
This time around, that support level has already been broken.
The only other key support level for the buyers right now below the 100-day MA is the 18 January low of 1.2165. It is a level that helped to stall the fall on 1 March, where the pair recorded a low of 1.2155.
The 1.2165 level is the floor of the trading range in the pair this year, and a break below the 100-day MA and the 1.2165 level opens up the way for more pain towards 1.2000 and possibly beyond.
While the dollar has only started to make strides over the past week, it is a timely one as euro sentiment is increasingly weaker due to disappointing economic data relative to last year.
And that could be enough to tip the pair over the edge this week and if positioning data is to go by, the pain here could just be the beginning.
