EURUSD Fell 15.40% After the Last U.S. Credit Downgrade

If you haven`t sorted EURUSD at the beginning of the Russia - Ukraine war:

The rend continuation:

Or the Double Top Chart Pattern:

Then you need to know that on Tuesday, Fitch Ratings downgraded the US debt rating from the highest AAA rating to AA+, citing "a steady deterioration in standards of governance."

This downgrade occurred following last-minute negotiations among lawmakers to reach a debt ceiling deal earlier this year, putting the nation at risk of its first default.

In the wake of a similar credit downgrade in the past, the EURUSD pair experienced a significant decline of 15.40% within one year. Standard & Poor's, one of the three major credit rating firms, downgraded U.S. debt on Aug. 5, 2011, after another major debt ceiling battle.

Currently, the U.S. 10-year Treasury yield has risen to 4.15%, reaching its highest level since November 2022.

Although a 15.40% decline for the EURUSD pair may not be likely, it's worth mentioning that the target for EURUSD would be 0.924 if such a worst case scenario were to unfold.

Looking forward to read your opinion about it.

Transaction en cours:

EURUSD slowly slowly following the trendline.