EUR/USD Forecast: fresh weekly lows and counting
|- German political woes denting EUR's demand.
- Light macroeconomic calendar leaves sentiment to lead the way.
After Monday woes the EUR/USD pair settled at the lower end of Friday's range, coming under renewed selling after London's opening. The common currency is still undermined by political jitters in Germany after Angela Merkel was unable to form a coalition government.
Despite local shares´ markets see limited volatility and hold right below their opening levels, the EUR can't find buyers, in spite dollar's demand somehow eased, on news indicating that Janet Yellen won't stay in the Fed´s board after being replaced by Jerome Powel the next February. On the macroeconomic front, little new has come from Europe today, while later in the day, the US will release Existing Home sales data for October.
Now trading around 1.1720, the pair set a new weekly low at 1.1713 after multiple intraday attempts to regain the 1.1745 mark failed. In the 4 hours chart, the downward potential has increased as the price moved further below a bearish 20 SMA, now breaking through the 200 SMA, as technical indicators remain within bearish territory, with the RSI anticipating further slides, as its reaching fresh lows at 42.
The immediate support is now 1.1705, the 50% retracement of the latest bullish run, followed by the 1.1660/70 price zone. Below this last, bears will get the grip, with scope then to test 1.1620. A steady advance beyond 1.1745 exposes 1.1790, being this last the level to surpass to see the rally extending up to 1.1830.
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