Coincidentally, the euro is slightly softer at the same time the data is released but I don't see this as being much of a material factor. Excess liquidity is still plentiful in the euro area after the measures over the last few months.
As I discussed in the previous review, the EUR managed to trade more downside and it is close to our second target at 1,1620
The main cause for this drop was the breakout of the horizontal range in the background.
Further Development
Analyzing the current trading chart of EUR, I still see strong downside pressure and potential for even further drop towards the 1,1620 and 1,1545.
1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Natural gas and Cocoa today and on the bottom Lean Hogs and Silver.
Euros on the negative territory, which is another confirmation of the short-term downside trend.
Key Levels:
Resistance: 1,1700
Support level: 1,1545
