After breaking below the 1.05 handle, EUR is now testing a very important level at 1.0448 (2023 low).  A break would open the door for a larger move lower. We also discuss EURJPY, where techs suggest we could see declines >4%.

EURUSD

Markets are coming close to a very significant techs level at 1.0448 (2023 low) after breaking below the 1.06-1.0601 region (April 2024 low, psychological level). Thus far signs have been very bearish, with the cross lower in weekly slow stochastics and the bearish outside week in early November.

IF we see a break below on a weekly basis, it would be yet another bearish sign. We see support first at 1.0341 (2017 low), which is a level we found support initially in May 2022 as well. Subsequent support is at 1.02-1.0201 (61.8% Fibonacci, psychological support).

Resistance is likely at 1.06-1.0601 region (April 2024 low, psychological level).