EUR/USD: Reaches Lower Low - Does It Have Further To Drop?
Al Brooks | Nov 08, 2021 10:00AM ET
EUR/USD failed to break below its month-long trading range. It is now at its lower low double bottom with the Oct. 12 low. Once it hits the Oct. 29 number, it'll be a high 2 buy signal. The pair is showing a small bull body, so a buy signal bar could be stronger. If bulls fail to get a strong reversal up in next few days, the selloff should resume down to below the Mar 9, 2020 high. That was the breakout point of last year’s rally.
The pair should rally for a month or two soon since its reached the bottom of 15-month trading range and is in the middle of 7 year trading range.
That said, EUR/USD is still more likely to dip down to 1.15 or 1.14 before turning up, though a couple of big bull bars this week would make traders conclude that the reversal has begun.
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