Nothing nastier than a false breakout
The euro broke above a tough band of resistance around 1.1450 in European trade. It touched 1.1465, the highest since October 4.
It's been a complete reversal from there. The US dollar has slowly gained momentum and the IMF global growth downgrades gave it another lift. In turn, that's weighed on EUR/USD a taken it down to the lowest since Friday.
The latest leg isn't so much a euro fall as it's a broad dollar rally.
Technically, it's an outside bearish reversal. That's especially notable since it came after hitting a new cycle high. Now, the 1.1323 level is critical. If that breaks, it could be precipitous fall lower but at the moment, no side of the euro trade is feeling particularly comfortable.
