The Single currency crashes over 70 pips amid concerns that European banks will be hit by their exposure to the Turkish Lira. The Turkish Lira has depreciated by over 35% this year and this will surely affect profits for European banks that have investments in Turkey. Moreover, the ECB pointed out that the depreciation in the Turkish currency might mean that non-hedged Turkish borrowers might begin to default on foreign currency debt. For today, the Euro's sell-off might deepen if the U.S dollar strengthens after the release of a positive U.S CPI figure.
The Euro breaks below the 1.15495 and crashes towards the 1.414 Fibonacci extension at 1.14333. Given the negative sentiment surrounding the Euro, expectations are that the sell-off will continue at least towards the 1.618 Fibonacci extension at 1.13957.
Support: 1.14319 1.13957
Resistance: 1.15495 1.16161