The euro posted strong declines on Thursday. This came as the key support level broke. The bearish momentum in the currency came on the back of ECB official comments regarding possible stimulus measures. Olli Rehn, a governing council member of the ECB, said that stimulus measures could overshoot market expectations. This sent the common currency plummeting on the day.
Will the Euro Weaken Further?
The breakdown in the currency pair after losing the support at 1.1140 could trigger further declines. However, the dynamic support off the lower trend line could come to the currency pair’s rescue. But it is unlikely that this support could hold much longer. A breakdown lower could see the euro testing the previous lows at 1.1030.
