EUR/USD falls below 100DMA once again

The effects of the linear tapering from the Federal Reserve have helped a stronger dollar to emerge, with the euro dropping below the 1.36 level and testing the important 100-day moving average again.

The downtrend resistance from the 1.38 levels and the 1.37 level have kept the euro from climbing too far. And with the inflation data for the eurozone due tomorrow, there is still an element of speculation that some form of monetary policy change will come, should the disinflation spiral continue.

Any drop through 1.3590 puts the 1.3500 level back in focus for EUR/USD – there is significant support at this level.

Spot FX EUR/USD chart

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