The euro to dollar exchange rate (EURUSD) remains caught in a longer-term downtrend with a close below the 30-year channel suggesting parity will ultimately be achieved.

“Having pushed through 1.08 on Friday, for the second time since the Fed meeting, EUR/USD starts the week swinging aggressively in ranges up to 1.09. Expect continued large big-figure moves on a multi-day basis,” says John Cairns at RMB Global Markets.

At the time of writing we see the euro dollar exchange rate is trading higher 1.0949.

It appears that the shared currency is forming a solid base against the dollar and pound sterling at the present time after weeks of selling pressure.

Any further declines in the exchange rate will most likely only occur once this period of consolidation has run its course.