Hi there traders, this is Steve Miley for Forextraders.com and here we’re looking at the euro vs the US dollar, EUR/USD. Well, a setback from this tentative downtrend line that comes of these peaks in here from back in June, the market flirting with this trend line throughout the first part of August in here and then setting back from there, taking out supports in here last week at 1.11130 as the market pushed lower.
Primarily US dollar strength but also some euro weakness in here, concerns about the global slowdown impacting negatively on the euro. European economic data deteriorating. Euro dollar lowering here we’ve also seen a really aggressive push higher in global bond prices, so lower bond yields in here but significantly lower yields in here for German government bonds in here, and that’s helping the Euro lower also in here.
And we took out an important level at the end of last week at 1.10690 pushing down to 1.10650 that sets a more bearish intermediate term tone from a technical analysis perspective and that leaves risk lower going into the early part of this week and particularly today we do see threat to 1.10650 and maybe even closer to the cycle low posted here in early August at 1.10250. Some point this week 1.1000 psychological option target also could come into the spotlight. This has been Steve Miley; the market chart is on behalf of Forextraders.com and I wish you a great trading day.