EUR/USD: Risk of falling sharply below 1.098

Worse than expected data from Germany put more pressure on the euro. Valeria Bednarik, Chief Analyst at FXStreet, is projecting a stoutly fall once the support level at 1.098 is broken.  

Key quotes

“EUR/USD is hovering around the 1.1000 level ever since the day started, unable to attract investors. The pair attempted to recover some ground early London, although worse-than-expected German Factory Orders put a halt to the shared currency´s advance. According to the official report, December orders in the country fell by 2.1% MoM and by 8.7% YoY.”   

“The pair is holding on to its bearish stance in the short-term, despite confined to the 1.1000 area.”

“The 20 SMA heads sharply lower now converging with a Fibonacci level at around 1.1035. The pair will likely accelerate its slump on a break below 1.0980, the immediate support.”