The common European currency has lost considerable 2.13% against the US Dollar during the last two sessions. Traders have pushed the rate lower due to fears of the Euro’s exposure to the crisis-hit Turkey.
By Monday morning, the rate had plunged to a fresh 13-month low, being supported by the monthly S3 at 1.1365. In addition, the bottom boundary of a newly-drawn channel is likewise located there.
Technical signals are pointing to a recovery in this session, as shown by gradually-recovering indicators. In this case, daily gains should be capped near the 55-hour SMA at 1.15.
However, traders should still take into account that Turkey may still cause some downside pressure on the Euro before the expected appreciation actually takes place. A possible target is the psychological 1.13 mark.
