The euro traded weaker with the depreciation against the US dollar hitting its latest 20 -year low!
The gloomy European economic sector data published on Tuesday yesterday continued to paint a picture of the economic recession hitting the West with the slowest growth in 16 months.
There are still concerns directed at the global economic downturn with risky market sentiment pushing the US dollar soaring sharply in trading yesterday.
According to a study of economic analysts, the United States (US) as the largest economy in the world faces the risk of recession with a percentage reaching up to 70%!
Observing the price movement on the EUR/USD currency pair chart, the price has displayed a severe plunge starting in the European session yesterday until 200 pips daily decline was recorded with concerns over the price falling to a 20 -year low finally becoming a reality.
The price that plunged past the 1.04000 support zone which several times supported the price before has recorded the latest lows after the decline in the New York session yesterday hit the level around 1.02400.
The slow rise was initially seen testing the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the EUR/USD chart before the decline to continue the bearish trend also crossed the 1.03000 target level.
It is not impossible for prices to continue their decline today based on the pattern displayed while investors await the release of US services sector survey data and FOMC minutes.
If the US dollar remains strong against the Euro, the price will plunge even lower and potentially head up to the 1.01000 level to continue hunting for the latest record lows.
On the other hand if the price starts to make a rise again, the 1.03000 level is likely to be the initial resistance of the price before the price heads back to the 1.04000 zone which was previously the focus.
