As stated on 9/14 chart analysis, the Euro Dollar dropped after at forth attempting to break above the critical Key Resistance 1.1797 level throughout the week. However, this is yet still movement in progress; therefore I reckon that this currency pair will continue to go to significant Mean Support 1.1541.
The Euro Dollar/US Dollar pair was trading just across the 1.15 handle following testing the Mean Support 1.1541 in early trading session on Tuesday, as we predicted. The currency pair continues to be under pressure from the time the Federal Reserve rate-day a week ago and an obvious crack below the 1.15 Mean Support would undoubtedly warn of a test out of the Yearly Low 1.1297.
Which in turn can lead to an additional selloff in EM's (emerging markets), as the continuing Dollar-funding turmoil might further worsen? On a marginally positive note, the broader DXY index was trading at its best level ever since early Sept, while the Euro Dollar struck a 6-week low yesterday in the initial trading session.