The break of .8500 should have downside consequences.

The EUR was hit hard over the weekend, not only against the US Dollar but against other currencies as well. One of them in particular is the EURGBP which broke lower below key support that has been a huge level since summer of 2023. With this breakdown of the year long consolidation, the risk of further losses is high, especially given the UK jobs data this week and CPI and Bank of England decision next week.

Downside targets look to be the .8440 then .8404 near term, with an eventual target of the .8333 level, the 88% retracement of the 2022 range.

Blake Morrow

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Blake Morrow