EUR/USD stumbles again — Is a bigger drop around the corner?
Key highlights
- EUR/USD started a major decline below 1.1600 and 1.1580.
- It traded below a contracting triangle with support at 1.1595 on the 4-hour chart.
EUR/USD technical analysis
Looking at the 4-hour chart, the pair traded below a contracting triangle with support at 1.1595. The pair shows bearish signs below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
Immediate support could be 1.1500. The first major support might be 1.1470. A close below 1.1470 could open the doors for a larger decline toward 1.1420. Any more losses might set the pace for a test of 1.1350.
On the upside, an immediate resistance could be 1.1550. The next major resistance might be 1.1580. A close above 1.1580 could open doors for gains. The main hurdle for the bulls could be 1.1620 and the 100 simple moving average (red, 4-hour). If there is a close above 1.1620, the pair could rise toward the 1.1650 level.
Author
Aayush Jindal
TitanFX
I have spent over six years as a financial markets contributor and observer, and possess strong technical analytical skills. I am a software engineer by profession, loves blogging and observing financial markets.
