The EUR/USD pair fell apart on Wednesday, as the 1.20 level has offered too much in the way of resistance, and of course there is word that a potential tax deal may be in the works. That of course helps the US dollar, and falling to the 1.19 level makes a lot of sense, as it is the next large, round, psychologically significant number. We could get a bounce from here, and I think short-term traders may try to pick up some value. However, if we break down below the 1.1880 level, I think the market will probably go down to the 1.18 level next.
Written by FX Empire