EUR/USD could extend its cecline below 1.0750
|Key Highlights
- EUR/USD failed to stay above the key 1.0980 support area and declined steadily.
- A key bearish trend line is forming with resistance near 1.0890 on the 4-hours chart.
EUR/USD Technical Analysis
Looking at the 4-hours chart, the pair traded as high as 1.1147 before starting a downward move. There was a break below many major supports near 1.1000 and the pair settled below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
Besides, there was a break below the 50% Fib retracement level of the main upward move from the 1.0635 low to 1.1147 high.
It opened the doors for more losses below the 1.0850 support. An initial support on the downside is near the 1.0750 level or the 76.4% Fib retracement level of the main upward move from the 1.0635 low to 1.1147 high.
If EUR/USD fails to stay above the 1.0750 support, there is a risk of more losses. The next major support is near the 1.0680 level, followed by the 1.0635 swing low.
On the upside, there is a strong resistance forming near 1.0900 and a connecting bearish trend line on the same chart. The main resistance is now near 1.0980 and the 100 SMA, above which the pair might turn bullish.
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