The euro has broken lower against the dollar again today following a short period of consolidation and 1.07 is once again coming under some pressure.
Prior to this move we had seen a divergence appearing in the pair, with the stochastic making higher lows even as the pair fell from 1.0865 to 1.0707. This suggested that the move may be losing some momentum and today’s selling could confirm this.
At the moment it’s too early to tell but the ongoing divergence is still possible and the same could form on the MACD histogram.
It should be noted that while this should act as a red flag for a possible correction, it is secondary to price action which continues to look bearish at this stage.
If the pair continues to push lower then it could find support again around 1.0650. Below here, further support could be found around 1.0520 followed by this year’s lows, around 1.0460.
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