EURUSD – Support Found But Further Downside Seen

The euro has continued to slide against the dollar today after some heavy selling on Thursday on the back of some very dovish comments from European Central Bank President Mario Draghi.

Having broken through September lows yesterday, the pair looks likely to see further losses in the coming weeks. It is currently finding support around 1.1015, which coincides with the lows set on 18 August.


While this may lead to more consolidation or even a retracement in the short term, I think this may prove to be a temporary support level, with the next key support level possibly coming around 1.09.

An ascending trend line – 13 March lows – could offer support at this level although it should be noted that with only two touches at this stage, this is currently only a speculative trend line. If the pair does find support here it would be the third touch and thus confirm it as a legitimate trend line.

Below here the pair could run into further support just above 1.08, which marks the lows for the pair for the last six months.


If we do see a retracement in the pair from the current support, it will be interesting to see how the pair reacts around 1.11, the September lows highlighted above. A move beyond this would bring the key fib levels into consideration being 38.2% – 1.12 – 50% – 1.1250 – and 61.8% – 1.1310.

It’s interesting to see on the OANDA order book that 1.10 is clearly a big level of interest. There are a lot of pending buy and sell orders here. It doesn’t necessarily provide bias information at this time as both are roughly equal but it would suggest there’s going to be a lot of activity here.

Order BookTo find more tools like this, visit OANDA Forex Labs.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.