EUR/USD Weekly Technical Forecast: Breach Through Key Support Paves Way for Deeper Declines
EUR/USD TECHNICAL HIGHLIGHTS:
- Key Support at 1.1500 Break
- Euro at Risk of Deeper Declines Towards 1.1350
- ReliefBid Confirmed Provided Euro Closes Above 50% Fib
The Euro endured a torrid time last week with the currency trading below key support at 1.15 for the first time since July 2017. As such, the break through the range base that has been in place since May does not provide much hope for Euro longs who will continue to head for the exit as the near-term prospects for the Euro have soften.
Persistent weakness below 1.15 would imply that the outlook for the Euro has grown more negative in the near-term. Alongside this, a firm break through the 50% Fib level of the 1.0340-1.2560 rise at 1.1450 and more importantly a close below could suggest that declines will gather pace with paving the way for a making a move towards 1.1350. As such, failure for 1.1350 to hold leaves the pair vulnerable to deeper declines, with little in the way of notable support before 1.1188, which represents the 61.8% Fib.
Given the sizeable declines in Friday’s session, which is the largest since June 14th, opportunities may present itself for some respite, as was the case after the price action seen on June 14th. Consequently, a bounce back towards 1.15 would be confirmed provided that the pair is able to consolidate and hold above 1.1450.
EURUSD CHART: Daily Time Frame (November 2017-August 2018)
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--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.