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EUR/USD Could Decline Further Below 1.1750

Key Highlights

  • EUR/USD is trading in a bearish zone below the 1.1850 pivot level.
  • A crucial bearish trend line is forming with resistance near 1.1800 on the 4-hours chart.
  • GBP/USD recovered nicely after it tested the 1.3600 support zone.
  • USD/JPY climbed above 110.00, but it is still facing hurdles near 110.50.

EUR/USD Technical Analysis

The Euro started a fresh decline below 1.1850 against the US Dollar. EUR/USD even broke the 1.1800 support zone to move further into a bearish zone.

Looking at the 4-hours chart, the pair even tested the 1.1750 support zone. It settled well below the 1.1850 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The recent low was near 1.1754 and the pair is now consolidating losses. It is trading above the 23.6% Fib retracement level of the recent decline from the 1.1830 swing high to 1.1754 low. The first key resistance on the upside is near the 1.1795 level.

The next key resistance is now forming near the 1.1800 level. It is near the 50% Fib retracement level of the recent decline from the 1.1830 swing high to 1.1754 low. There is also a crucial bearish trend line forming with resistance near 1.1800 on the same chart.

To move into a positive zone, the pair must settle above the 1.1850 resistance. The next major resistance on the upside sits near 1.1850. Conversely, the pair might continue to move down below 1.1750. The next major support is near the 1.1700 level.

Looking at GBP/USD, the pair declined heavily towards 1.3600 before the bulls took a strong stand. It is now recovering and trading above 1.3720.

Economic Releases

  • German IFO Business Climate Index for July 2021 – Forecast 102.1, versus 101.8 previous.
  • German IFO Current Assessment Index for July 2021 – Forecast 101.6, versus 99.6 previous.
  • German IFO Expectations Index for July 2021 – Forecast 103.3, versus 104 previous.