The Euro failed to overcome the strong resistance of the 200-hour SMA and the weekly PP at 1.1625 on Thursday morning. This increased the bearish pressure which in turn pushed the rate down to the senior channel and a one-year low at 1.1520.
Even this significant support level was helpless early on Friday when investors started to short the Euro in the wake of ECB comments on EU banks’ exposure to the weak Turkish Lira. The pair plunged 0.65% within three hours. Two support levels that could halt this plunge are the weekly S2 or the monthly S3 at 1.1440 and 1.1366, accordingly.
Given that the pair is strongly oversold now, bulls may try to take over the market later in the day; however, it should be noted that the above fundamentals are still likely to continue pressuring the rate lower.