EUR/USD Moves Sharply Lower As Dollar Buying Continues

The stock markets around the globe fell overnight and the Dow is looking weak as the day gets underway.  Oil prices are down about a $1.00 as well.    The EURUSD responded by falling quite dramatically in the London session.  Along the way the price fell back through the 100 hour MA at the 1.4775 level. The prior day close at 1.4772.  Finally, the momentum down pushed the price through the double bottom at the 1.4683 level.   This helped accelerate the decline in the pair.  The high for the day extended up to the 1.4810 level in the first few hours of trading as the market continued to struggle to find its direction  - before the decline.

The pair tested downside support at the 1.4624 level and has bounced. We will watch that level on the price declines. Below that level, the longer term target at the 1.4560 level looms (38.  On the topside,  the 1.4683 level double bottom should be a level of resistance.  Above that the 1.4710 level which is the 38.2% retracement level of the move down from yesterday.

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