EUR/USD Remains At Risk Of More Downsides

Key Highlights

  • 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.

EURUSD Technical Analysis Euro US Dollar

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.

Looking at GBP/USD, the pair is also facing a strong resistance near the 1.2550-1.1260 area. Besides, USD/JPY needs to clear the 108.20 resistance area to continue higher in the near term.

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.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

Aayush's latest posts