EUR/USD plunged through the 1.28 handle on Thursday as traders continue to worry about the European debt issue. The pair has been very bearish as of late, and the trend looks set to continue as the Euro has been selling off against almost every other currency. The pair is heavily eyed at the moment, and it the focus of everyone’s attention. However, the Euro has been even weaker against most other currencies, and has even made a new 20 year low against the Aussie. Because of this, and the noise that we see in this pair – perhaps selling the Euro against AUD, CAD, or NZD makes more sense.
The breaking of the 1.28 level is significant though and should signal further weakness. The pair looks vulnerable down to about 1.25 or so where it will find large support. We are selling rallies in this pair, but selling the Euro for longer-term trades against the above mentioned currencies.
Written by FX Empire