EUR/USD drops below 1.1150

Matías Salord FXStreet

EUR/USD broke below 1.1150 and fell to 1.1145 hitting a fresh daily low. The pair is hovering sightly below 1.1150, consolidating losses. So far today, it has moved in a range of around 25 pips.

The Euro is pulling back on Thursday after it reached earlier at 1.1177, a 3-day high. It ended a rebound that started on Tuesday from 1.1117 (3-week low).

In the very short-term momentum favors the downside. With price action moves so limited today, a decline below weekly lows seems unlikely at moments.

US data released today included initial jobless claims that rose to 241K, above the 240K expected and also the Housing Price Index that rose 0.7% in April. The data had a marginal impact on prices. Tomorrow the New Homes Sales report is due.

US: Weekly initial claims was 241,000, an increase of 3,000 from the previous week

Technical levels

EUR/USD continues to move with a bearish bias on a wider perspective. A consolidation below 1.1100 could clear the way to an acceleration to the downside. On the upside, above 1.1190/1.1200 the euro could gain support for a more sustainable move.

To the downside support levels might lie at 1.1140, 1.1125 (Jun 21 low), 1.1118 (Jun 20 low) and 1.1100 (psychological). On the upside, resistance could be seen at 1.1165 (20-hour moving average), 1.1177 (daily high) and 1.1190.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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