In trading yesterday, EUR/USD fell below its 200-day moving average for the first time since May last year
The wave of dollar strength is starting to spread across all major currencies and the technical breakdown in NZD/USD isn't the only one worth watching this week.
EUR/USD is starting to experience a similar danger with price action falling below its 200-day moving average (blue line) yesterday and keeping below that today.
That level is seen @ 1.1863 currently, so that is a key level for buyers to try and move back above in order to recover some momentum after the drop yesterday.
Adding to the break in the 200-day moving average, price also broke below trendline support stretching to November @ 1.1865. As such, this now puts a lot of pressure on the early March lows @ 1.1836-44 to hold the line.
Otherwise, a break there sets out a slippery slope for EUR/USD to potentially slide further towards 1.1800 first before sellers may start to look towards the September and November lows closer to the 1.1600 handle.
Although this might be in large parts more of a dollar story, the euro itself doesn't have much argument to make to counteract any downside pressure.
Lockdowns are to be extended into Q2 and the vaccine rollout continues to see a divergence - which will in turn set out a stark contract in the recovery narrative in 2H 2021.
