The Single currency turned south this week, touching a two-week low of $1.1775 (at time of writing) on the back of the persistent demand for the greenback.

The Single currency turned south this week, touching a two-week low of $1.1775 (at time of writing) on the back of the persistent demand for the greenback.

 

The U.S dollar was on fire early this week after the Senate passed the tax reform bill, while upbeat U.S private sector job report yesterday has also contributed to the dollar strength.

 

Technical outlook

 

EUR/USD’s pull back from $1.1940 has continued to a low of $1.1775 so far as expected, losing almost 165 pips over a week!

 

Here is what we called early on 1^st DEC 2017:

 

Snapshot-EUR/USD possibly lower in the coming days... Invalidation @ 1.1943!

 

 

One week later…

 

The EUR/USD, as expected, nosedived to the clusters of Fibonacci retracement of a possible wave D of a “Gartley pattern”, one of the oldest recognized harmonic patterns...

 

 

We suspect that the selling bias on the EUR/USD may find support near $1.1760 followed by 1.1725 in the coming sessions. However, a breach below $1.1711 may open the door for further decline on the pair.

 

 

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