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EUR/USD Remains At Risk Of More Downsides

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Aayush Jindal

Key Highlights

  • The Euro failed to break the key 1.1280resistance and declined against the US Dollar.
  • A major bearish trend line is forming withresistance near 1.1280 on the 4-hours of EUR/USD.
  • The Michigan Consumer Sentiment Index in July2019 (Prelim) increased from 98.2 to 98.4.
  • The Chicago Fed National Activity Index in June2019 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 crucialresistance area at 1.1280, the 100 simple moving average (red, 4-hours), and200 simple moving average (green, 4-hours).

As a result, there was a bearish reaction below the 1.1250and 1.1240 support levels. The pair even broke the 1.1220 support area andtraded close to the 1.1200 support area.

A swing low was formed near 1.1204 and the pair is currentlyconsolidating losses. An immediate resistance is near the 1.1240 level and the50% 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 near1.1280 on the same chart.

Therefore, the pair might continue to struggle near 1.1280. Onthe downside, if there is a bearish break below the 1.1200 support, the pair couldaccelerate losses in the coming sessions.

The next key supports are near 1.1180 and 1.1175, below whichthe 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 July2019 (MoM) - Forecast -10, versus -15 previous.
  • Chicago Fed National Activity Index for June2019 – Forecast 0.10, versus -0.05 previous.
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