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Can EUR/USD Hold The 1.1500 Support?

Key Highlights

  • The Euro failed to move above the 1.1850 resistance and declined sharply against the US Dollar.
  • There was a break below two key bullish trend lines with support near 1.1760 and 1.1700 on the 4-hours chart of EUR/USD.
  • The Euro Zone CPI in May 2018 increased 0.5% (MoM), like the forecast.
  • Today in the US, the NAHB Housing Market for June 2018 will be released, which is forecasted to remain at 70.

EURUSD Technical Analysis

The Euro was seen struggling to move past the 1.1840 and 1.1850 resistance levels against the US Dollar. The EUR/USD pair declined sharply and broke the 1.1700 support area to move into a bearish zone.

EURUSD Technical Analysis Euro US Dollar

Looking at the chart, there was a failure to break the 1.1850 resistance, resulting in a downside push below 1.1750 and 1.1700 supports. The pair also moved into a bearish zone below 1.1700, 100 simple moving average (red, 4-hour) and 200 simple moving average (green, 4-hour).The decline was such that the pair even broke the 1.1600 support and traded towards 1.1540. Later, a minor upside correction was initiated, and the pair tested the 23.6% fib retracement level of the last drop from the 1.1851 high to 1.1543 low.On the upside, resistances are seen near the 1.1650 and 1.1700 resistance levels. On the downside, below the recent low of 1.1540, the next major support is near 1.1510-1.1510. As long as the pair is below the 1.1650 level, there is a risk of a downside break below 1.1540 and 1.1510 in the near term.Recently in the Euro Zone, the CPI release for May 2018 was released. The market was looking for a rise of 0.5% compared with the previous month.The actual result was similar, and the yearly change was also in line with the forecast of 1.9%. The market sentiment is currently stable, but there is a risk of more losses as long as the pair is below 1.1650.

Economic Releases to Watch Today

  • US NAHB Housing Market for June 2018 - Forecast 70, versus 70 previous.