Just like GBPUSD, at the moment our vision also is bearish on EURUSD pair. EUR/USD is trading well under 1.18, a two-week low, as a cautious market mood boosts the safe-haven dollar. Worries about rising US inflation, the Fed's tapering intentions and German elections are pushing the pair lower.
EUR/USD sheds ground for the second session in a row and breaks below the key support at 1.1800 to record new multi-week lows in the vicinity of 1.1770.
The renewed weakness surrounding the pair comes in response to the continuation of the recovery in the dollar, which in turn pushes the US Dollar Index (DXY) to fresh peaks in levels just shy of the 93.00 barrier.
On the daily chart, price rallied through the descending channel but met resistance at 1.19090. It broke the ascending line of support it was following throughout the rally and plunged down to to the resistance line of the horizontal channel, failed to flip it to support and is now trending below it. Target should be around 1.16630 (or 1.17000). Note that it’s almost like the price has formed a missed double top on the daily so the short entry should probably be around 1.18000/18200 which corresponds to zone 61.8 fibo.
EUR/USD levels to watch So far, spot is losing 0.16% at 1.1790 and faces the next up barrier at 1.1909 (monthly high Sep.3) followed by 1.1937 (100-day SMA) and finally 1.2000 (psychological level). On the other hand, a break below 1.1774 (low Sep.13) would target 1.1704 (monthly low Mar.31) en route to 1.1663 (2021 low Aug.20).
Wave-FX doesn\'t bear any responsibility for any trading losses you might incur as a result of using this data.\r\nAnalysis are only for educational purpose.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
