EUR/USD set for lowest close since March 2, what's next

The quick drop into the London fix extended slightly to a fresh low at 1.0956. That's the worst level since the day of the Brexit vote.

I would have expected a late-day bounce into the weekend but the German shooting news is keeping the euro under pressure. Sadly, terrorism has become so routing that it's a fleeting factor in markets.

At the moment, however, the earlier low continues to hold. There may be some minor stops if it breaks.

What's notable in the big picture is that Friday's declines come in the aftermath of an ECB decision that didn't offer anything on the dovish front. In addition, headlines today saying the ECB isn't in a rush to tweak rules or expand QE were also ignored.

Take that as a solid bearish signal.

The chart is also weak as it extends a series of lower lows and with no significant support until 1.0906.

What's arguing not to sell at the moment is the clock. Just 2 hours of trading remain in the week and with everyone on the way out the door, I suspect the odds are better for a bounce before the end of the day than further declines.

For more on the chart, see: Forex technical analysis: Can the EURUSD push to 1.0938 target?

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