The EUR/USD was hit badly with the European opening this Wednesday, as while stocks remain under pressure across the board, poor data from the EU continue to erode confidence in the area: German Ifo Business Climate survey shown further deterioration falling for its sixth month in a row; French, German and EU PMI’s again missed expectations, showing the downturn in the area seems to be deepening; and finally, despite Greece got two more years to meet government budget targets, the country debt rose to 150.5% of the GDP in the second quarter. Indeed, no good news in Europe.
The EUR/USD accelerates lower, hitting fresh daily lows around 1.2920 by the time of writing, after breaking below key 1.2950 area: the level represents the 61.8% retracement of its latest bullish rally. A daily ascendant trend line around the level has also been broken and the 1.2950/60 area will now contain the upside. Technical readings in the 4 hours chart show a quite strong bearish momentum favoring more slides: 1.2905 comes as immediate support and if breached the pair has scope to test 1.2820 area, 78.6% of the same rally. Steady gains above 1.2960 will deny the short term bearish momentum, and offer the possibility of a retest of daily highs around 1.2990.
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The EUR/USD accelerates lower, hitting fresh daily lows around 1.2920 by the time of writing, after breaking below key 1.2950 area: the level represents the 61.8% retracement of its latest bullish rally. A daily ascendant trend line around the level has also been broken and the 1.2950/60 area will now contain the upside. Technical readings in the 4 hours chart show a quite strong bearish momentum favoring more slides: 1.2905 comes as immediate support and if breached the pair has scope to test 1.2820 area, 78.6% of the same rally. Steady gains above 1.2960 will deny the short term bearish momentum, and offer the possibility of a retest of daily highs around 1.2990.
View Live Chart for EUR/USD
