The euro is down by 200 pips against the dollar since last Tuesday
Talks of auto tariffs overnight – although later denied – were enough to spark worries that saw the 1.1300 handle being tested and in quick succession we’ve seen price fall from the figure level to a low of 1.1268 on the day now.
The near-term chart continues to show a more bearish bias after price failed to break above the key hourly moving averages on Monday and since then, the decline has continued. Although Italian bonds are taking the early morning headlines in stride, euro traders aren’t convinced that there’s a resolution to come as it would seem.
Looking at the technical picture, price is now falling back below the 76.4 retracement level @ 1.1276 with minor resistance seen at 1.1263 and 1.1253. However, unless Powell casts a dark cloud over the dollar later today, the downside momentum looks towards heading back to the year’s low @ 1.1216 at this point.