The Euro is Heading Lower

The Euro retested the previously broken support level around the psychological barrier of 1.1600 and could not close above the mentioned level, maintaining the gradual bearish context.

Technically, and by looking at the 4-hour chart, we notice the continuation of the negative pressure coming from the 50-day SMA, accompanied by negative signals coming from the RSI and its stability below the 50 mid-line.

From here, trading is steadily below the previously broken support-into-resistance 1.1640, 23.60% Fibonacci correction. This encourages us to maintain our negative expectation, knowing that the breach below 1.1500 will facilitate the task required to visit the next stop at 1.1440.

The breach of the aforementioned resistance 1.1640 will postpone the chances of a decline and lead the pair to move within a temporary ascending path, to retest 1.1690, 38.20% correction, before retracing.

Note: Fed statement is due today and may cause volatility.

S1: 1.1560	R1: 1.1640
S2: 1.1500	R2: 1.1680
S3: 1.1440	R3: 1.1720