The euro remains under pressure. With European interest rates trading at record lows, and with macroeconomic sentiment remaining overwhelmingly negative, the EUR/USD cross continues to trade lower. However, the rate of decline has steadied more recently. Where will the pair trade next?
The chart below shows monthly support and resistance levels using an equidistant approach: the support and resistance ranges are of equal distances (between each other) and of equal sizes (between the tops and bottoms of each zone). For further illustration, I have added the rolling quarterly average interest rate differential (blue line) which