EUR/USD extends decline below 1.1050

After a short-lived recovery, the EUR/USD turned again to the downside and broke below 1.1050. It printed a fresh 6-day low at 1.1028 and it was trading at 1.1035, a hundred pips below Friday’s closing price. 

The pair remains with a bearish bias and with a significant bearish gap (still open) between 1.1100 and 1.1135. Greenback started the week with momentum after the FBI decided to take no action against Clinton regarding the email case.  US election continues to be the relevant event. Tomorrow will be the key day. 

Levels to watch

EUR/USD is falling on Monday after posting on Friday the second weekly gain in a row. The pair ended marginally above the 20-week moving average but today retreated below, showing that the 1.1120/40 area continues to be a relevant area. 

To the downside, support could be located at 1.1025/30 (daily low), 1.0995/99 (Oct 28 & 31 high) and 1.0960 (Nov 1 low). On the upside, resistance could be seen at 1.1065 (20-hour moving average), 1.1110 (daily high) and 1.1135/40 (last week high). 

To learn more about this topic, check our video analysis.