EURUSD: How low can it go?

After many months and weeks of the sideways and choppy trading, it looks like the EURUSD pair has finally caught some momentum - to the downside.

In the last two weeks, the pair has lost around 300 pips, which is a large decline, considering the recent low volatility.

How low can the euro go? For this to find out we must take a look at the weekly chart as the EURUSD pair is now trading near 3-year lows. It appears the pair is now testing strong horizontal support of previous lows and highs at around 1.0830, which might spark some relief rally.

Another demand zone could be then seen at 1.06. Keep in mind, this is a weekly chart, so it's appropriate for swing traders. 
As long as the euro remains below 1.10, the medium to long-term outlook seems bearish, but bears need to push the pair below 1.0830 to confirm this view. The more immediate resistance stands at 1.0880.

The bearish trend could persist over the near future as the greenback should be bid either in the risk aversion or risk-on sentiment. 

Tomasz Wisniewski Head of Education