The EUR/USD pair starts the week with a slight positive tone, having advanced up to 1.1261 during the Asian session. A stronger Japanese Yen drove the dollar lower across the board, amid falling stocks.
Chinese equities are once again under pressure, down 1.5%, as last week intervention optimism seems to be fading. European indexes are struggling around their opening levels, with an increasing bearish potential that should weigh on the greenback if it continues. Germany released its Retail Sales for July, up 1.4% in the month, and 3.3% compared to a year before, which also supported the advance in the EUR.
View live chart of the EUR/USD
Nevertheless the technical picture is still bearish for the EUR/USD, as the 4 hours chart shows that the intraday recovery stalled below the 61.8% retracement of these last two weeks rally around 1.1280, whilst the 20 SMA maintains its sharp bearish slope around it. In the same chart, the technical indicators are grinding lower in negative territory, supporting a downward continuation for the upcoming hours. The immediate support comes around 1.1160, with a break below signaling a downward continuation towards the 1.1120 price zone.
Only above 1.1280, the mentioned Fibonacci resistance, the pair may revert its negative intraday tone, and be able to recover up to the 1.1330 price zone.
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