EUR/USD – Re-testing January lows in the next days?

Recap: the single currency is in a long-term downtrend versus the greenback since July 2008, where the euro hit its all-time high at USD1.6063. In the last months trading became more volatile. We saw a massive slump in the first days of 2015. The downward resistance line (green) steepened again as the single currency continued to decline versus the greenback. The single currency hit a new 11-year low at USD1.1097 and then entered a phase of stabilization. Still the euro registered an eigth consecutive month of losses versus the greenback.

Yesterday we saw a sharp bearish move and the euro broke through the support around USD1.1300 hitting an intraday-low at USD1.1183. Although the euro moderately recovered today, currently trading at USD1.1206, the currency is bound for testing the lows from January 27th at USD1.1097. As long as we do not see the currency pair reversing losses and trade above the established support around USD1.1300 there are no signs for an imminent recovery.

A look at the monthly chart reveals an even more bearish picture. The currency pair's next support would be the support line of the bearish channel with a possible target around USD1.060 or even lower.

Daily chart