EUR/USD has gone into a consolidation phase after having plunged to its weakest level since December 2002 at 1.0161 on Wednesday. 1.0130 aligns as next target unless euro steadies above 1.0200, FXStreet’s Eren Sengezer reports.

Rise above 1.0200 needed to avoid further falls

“In case Wall Street's main indexes stage a decisive rebound, EUR/USD losses could remain limited. The pair, however, is unlikely to break out of its downtrend in the current market environment.”

“1.0200 (psychological level, static level) aligns as initial resistance and in case the pair manages to flip that level into support, it could extend its recovery toward 1.0250 (upper limit of the descending regression channel, static level).” 

“On the downside, 1.0160 (multi-decade low set on Wednesday) forms interim support ahead of 1.0130 (static level from November 2002, former resistance) and 1.0100.”