The EURUSD Continues to Fall Further

The EURUSD Continues to Fall Further

The EURUSD fell further last week as the downward trend looks to push the price closer to the 1.1550 level. The temporary pullback the previous week did not last long as traders stick with the bearish view resulting in a 5-month price low for the pair.

Taking a closer look below at the daily chart we see that on the 14th May we had a rejection candle at a key resistance zone which encouraged traders to add to their sell trade. When we see a spike on a daily candle like this it tells us that the sellers are still in control.

Supporting the sellers is the continued demand for the US dollar on the back of expected future interest rate hikes which pushed US treasury yields above 3%.

Add to this, fears that the Eurozone economy is slowing further and uncertainties around what plans a the new Euro sceptic Italian coalition government may implement make a EURUSD bearish position more appealing.

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