EURUSD - Under pressure

Its been a heavy week for the Euro after an very impressive recent run.  After lower than expected inflation data released earlier this week, it has promoted people's view that the ECB could be about to loosen their monetary policy and cut interest rates next week in their meeting on the 7th November, in order to stimulate the eurozone growth.






We are approaching some key supports however after free falling 300 points this week down from highs of 1.3800.  Important levels to watch on the downside are 1.3470, 1.3400 as well as the bottom of the uptrend channel.  I would expect some sort of recovery given the speed of which the currency has sold off over the last couple of days, but whether it will be sustainable for any significant period of time remains to be seen.

Looking to the upside, resistance levels will be the top of a previously formed sideways range at 1.3580 and the high made on 25th October at 1.3832.  The other level that should be noted is the Maribuzo line on this week's weekly chart which is at 1.3649.

Charts sourced from ig.com