Euro Below Support

Negative trading dominated the euro’s movement against the US dollar within the expected bearish path in which we relied on confirming the breach of the 1.1720 support level targeting 1.1620, the pair recorded its lowest price during the previous session at 1.1620.

Technically, looking at the 4-hour chart, we find that the SMA 50 is conducting negative pressure on the price, supporting more downside moves, in addition to trading stability below the previously broken support floor, which turned into resistance at 1.1720 Fibonacci retracement of 23.60%.

As long as trading remains below 1.1720 and most importantly 1.1750, the bearish scenario will remain intact towards 1.1620 targets as a preliminary target, and breaking them will pave the way towards the bottom of 1.1560.

From the top, consolidating again above 1.1750 delays the chances for a pullback, but does not negate it, and we may witness a slight bullish trend aiming to re-test 1.1800.

Caution: RSI tries to provide positive signals on short time frames.

S1: 1.1635	R1: 1.1745
S2: 1.1580	R2: 1.1810
S3: 1.1525	R3: 1.1860