Key Highlights
- The Euro fell sharply recently and broke the 1.1440 and 1.1400 support levels against the US Dollar.
- There is a major bearish trend line forming with resistance at 1.1500 on the 4-hours chart of EUR/USD.
- The US CPI in July 2018 increased 0.2% (MoM), similar to the forecast and more than the last +0.1%.
- The yearly change came in at +2.9%, less than the forecast of +3.0%.
EURUSD Technical Analysis
The Euro came under a lot of bearish pressure this past week after it settled below the 1.1520 support area against the US Dollar. The EUR/USD pair even fell below 1.1420 support and declined sharply.
Looking at the 4-hours chart, the pair declined heavily during the past few sessions and sellers even managed to clear the 1.1400 support. The pair is now trading well below 1.1420 and 100 simple moving average (4-hour, red).
A new monthly low was formed at 1.1367 and the pair is currently consolidating losses. An initial resistance on the upside is near the 23.6% Fib retracement level of the last drop from the 1.1628 high to 1.1367 low.
Moreover, there is also a major bearish trend line forming with resistance at 1.1500 on the same chart. The trend line resistance coincides with the 50% Fib retracement level of the last drop from the 1.1628 high to 1.1367 low.
Therefore, if the pair corrects higher, it is likely to face sellers near the 1.1420, 1.1430 and 1.1480 resistance levels in the near term.
On the downside, the recent low of 1.1367 is a short term below. Below 1.1367, the pair may continue to decline towards the 1.1340 and 1.1300 levels.
