EURUSD – Euro Remain at Risk of Further Declines
|Key Highlights
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The Euro continued to face sellers against the US Dollar, as EURUSD declined below 1.0650.
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There was a crucial break noted for the EURUSD pair on the 4-hours chart, suggesting more losses.
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Today, the US will witness the release of the Chicago Fed National Activity Index (CFNAI).
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Earlier today, the Japanese Merchandise Trade Balance Total released by the Ministry of Finance posted a trade surplus of ¥496.2B in Oct 2016.
EURUSD Technical Analysis
The Euro collapsed recently against the US Dollar, and broke the 1.0650 support area. The EURUSD pair looks like under a lot of bearish pressure at the moment, and may continue to slide.
There was a triangle break noted recently on the 4-hours chart, which ignited further losses. The pair is currently attempting to correct higher, but the same broken triangle support is now acting as a resistance.
On the downside, the recent low of 1.0570 may act as a short-term support. However, a break below it could take the Euro towards 1.0540 level. The H4 RSI is well below the 50 level, and signaling more declines in the near term.
US Chicago Fed National Activity Index
Today in the US, the Chicago Fed National Activity Index (CFNAI), which is a monthly index designed to gauge overall economic activity and related inflationary pressure will be released by Federal Reserve Bank of Chicago.
The market is waiting for a minor improvement from the last reading of -0.14 in Oct 2016. If there is a rise in the index, the US Dollar may gain bids later today.
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