Euro probes below parity but break needs to be verified
The EURUSD eventually broke below parity and hit new lowest since 2002 at 0.9952, after hovering around this level in past three days.
Although break of parity needs a confirmation on repeated close below this level, strong negative signal has been already generated, with the single currency expected to be pressured further when stops that are parked below parity will be triggered.
This may spark acceleration towards 0.9859 (Dec 2002 low) and 0.9607 (Sep 2002 trough) initially, but the euro may suffer more, as fundamentals are likely to worsen.
However, extended hesitation at parity cannot be ruled out, but this is, in current environment, just going to signal an extended consolidation before bears finally accelerate lower.
Falling 5DMA (1.0068) which tracks the latest bearish acceleration since June 28, offers solid resistance, followed by descending 10DMA (1.0180), where extended upticks should be capped.
Res: 1.0068; 1.0121; 1.0179; 1.0221
Sup: 1.0000; 0.9952; 0.9859; 0.9607