The euro softened after manufacturing and service activities in the eurozone contracted in July. The pair has met stiff selling pressure at July’s high at 142.30. A break below 140.70 caused a liquidation of leveraged long positions and a bearish MA cross indicates an acceleration to the downside. The former support has turned into resistance. 138.50 at the origin of a bullish breakout is the next support. 137.00 is a critical level from the daily chart and its breach could pave the way for a bearish reversal in the medium-term.
