Downbeat economic sentiment in the eurozone further depresses the euro against a roaring US dollar.
The break below 1.1760 from the daily chart has put buyers on the defensive. Strong inertia in favor of the greenback fuels the bearish ride as momentum traders pile in.
The former support has turned into resistance (1.1770). The euro is testing the next support at 1.1710, where a bearish breakout may extend the sell-off to last November’s low at 1.1600.
Then a reversal could be in the making in the medium term.