EUR/USD slides lower in rising oil. What’s next

Technical Analysis

HIgher oil prices hurt the eurozone’s balance of payments

Europe imports most of its oil and rising oil on a supply shock is another negative for the already-struggling region. That’s weighing on the euro as it falls 50 pips since the open.

The drop also puts the 50% retracement of the wild ECB move on Thursday.

Technicals have been a major driver in euro trading and I think the 1.1100 to 1.0950 range is where to watch. If the US launches any kind of attacks, look for more of a flight into the US dollar, with the euro being pulled down further.

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