November 22, 2024 at 06:28AM
This continues the technical predicament from last week: EUR/USD feels the inevitable pull towards 1.0500 next
The drop yesterday was a notable one as we finally see EUR/USD crack below the 1.0500 mark. It has been a key technical support level to the downside, stretching all the way back to last year. In October 2023, the pair did fall to a low of 1.0448 but on the weekly chart, it held a close above the 1.0500 mark.
And that brings us to where we are in trading this week. The break under 1.0500 yesterday was a good first step for sellers to go in search of a stronger downside momentum. But they will need to secure a weekly close below the figure level to confirm that. This also now calls into question the October 2023 low of 1.0448 of course.
If sellers can break those levels going into next week, it sets up for a break of the range in the past two years for EUR/USD.
The pair has largely been holding within a range of around 1.0500 to 1.1200 since the start of 2023. So, breaking the mold here will definitely provide a lot of impetus for any momentum drives to go running.
Do you think EUR/USD has what it takes to reach parity next? Deutsche Bank definitely thinks there is an argument to that at least.
This article was written by Justin Low at www.forexlive.com.
