EUR/USD Remains At Risk Of More Downsides22 July, 2019 by Aayush Jindal in Market Analysis
- The Euro failed to break the key 1.1280 resistance and declined against the US Dollar.
- A major bearish trend line is forming with resistance near 1.1280 on the 4-hours of EUR/USD.
- The Michigan Consumer Sentiment Index in July 2019 (Prelim) increased from 98.2 to 98.4.
- The Chicago Fed National Activity Index in June 2019 might increase from -0.05 to 0.10.
EURUSD Technical Analysis
The Euro made a few attempts to break the key 1.1280 resistance area against the US Dollar. However, the EUR/USD failed to gain momentum above 1.1280 and recently declined below 1.1250.
Looking at the 4-hours chart, the pair failed near a crucial resistance area at 1.1280, the 100 simple moving average (red, 4-hours), and 200 simple moving average (green, 4-hours).
As a result, there was a bearish reaction below the 1.1250 and 1.1240 support levels. The pair even broke the 1.1220 support area and traded close to the 1.1200 support area.
A swing low was formed near 1.1204 and the pair is currently consolidating losses. An immediate resistance is near the 1.1240 level and the 50% Fib retracement level of the downward move from the 1.1280 high to 1.1204 low.
However, the main resistance is near the 1.1280 level. Moreover, there is a major bearish trend line forming with resistance near 1.1280 on the same chart.
Therefore, the pair might continue to struggle near 1.1280. On the downside, if there is a bearish break below the 1.1200 support, the pair could accelerate losses in the coming sessions.
The next key supports are near 1.1180 and 1.1175, below which the pair might decline towards the 1.1150 support area.
Economic Releases to Watch Today
- UK’s CBI Industrial Trends Survey Orders July 2019 (MoM) – Forecast -10, versus -15 previous.
- Chicago Fed National Activity Index for June 2019 – Forecast 0.10, versus -0.05 previous.