The dollar hemorrhage continues in European trading

The moves on the session are turning rather outsized now but they’re all in one direction. And that is the dollar falling out of favour as it continues to be pummeled across the board. EUR/USD is now up 1.9% to 1.1060 and USD/JPY down 1.9% as well to 146.43 on the day, with the latter falling to its lowest since October.

It’s a scary moment for the dollar as this is all translating to key technical breaks across the board.

EUR/USD already broke to its highest since October earlier and is now securing a firm break above the 1.1000 mark. Meanwhile, USD/CHF is down over 2% to 0.8620 – breaking support around 0.8757 in a fall to its lowest since November.

Even USD/JPY has now broke the March lows and is down to its lowest since October last year.

At this point, it’s a case of not catching the falling knife as one would say. It’s all emotions and psychology that is dominating trading sentiment currently. Now is not the time to be standing in front of that moving train.

This article was written by Justin Low at www.forexlive.com.