EUR/USD slides to the fresh low since early July as US Dollar extends the latest run-up during early Thursday. In doing so, the Euro pair drops for the second consecutive day to 1.0866, refreshing the 1.5-month low amid market’s risk-off mood and the firmer US Treasury bond yields.
Also read: EUR/USD licks its wounds at six-week low under 1.0900 as Fed minutes, yields propel US Dollar
Technically, the EUR/USD pair’s sustained trading below the 200-SMA, as well as the previous support line stretched from late May, joins the bearish MACD signals to suggest the major currency pair’s further downside.
However, the oversold RSI (14) line joins a two-month-old horizontal support zone and a descending support line from July 28 to highlight 1.0845-35 as the short-term key support for the pair bears to watch.
In a case where the Euro pair drops below 1.0835, the early June swing high around 1.0780 may act as an intermediate halt for the pair’s fall toward May’s bottom surrounding 1.0635.
On the flip side, the latest swing high of around 1.0930 and 1.1000 round figure may entertain the EUR/USD buyers during a corrective bounce.
However, a downward-sloping resistance line from July 18 and the 200-SMA, respectively near 1.1010 and 1.1025, can challenge the Euro pair’s further recovery.
It’s worth noting that the aforementioned support-turned-resistance line from late May, close to 1.1060 at the latest, acts as the final defense of the EUR/USD sellers.
Trend: Limited downside expected
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.