EURUSD Weekly Technical Analysis – More Downsides?
- Euro moved lower against the US dollar after failing around the 1.1450 resistance area.
- More downsides are likely in the short term, as there is a lot of bearish pressure on EURUSD.
- Economic releases like US GDP and US Pending Home Sales might impact the EURUSD pair in the upcoming week.
The Euro moved lower this past week against the US Dollar, and in the process breached an important support trend line on the 4-hours chart. Moreover, the 100 simple moving average (4H) was also broken to open the doors for more downsides.
If the EURUSD pair managed to correct higher during the upcoming week, then the broken trend line might act as a resistance. Moreover, there was another support trend line, as highlighted in the chart which was breached. It coincides with the 23.6% Fib retracement level of the last leg from the 1.1466 high to 1.1009 low is around the same trend line. So, the 1.1110 level could act as a barrier for buyers.
The 200 SMA (4H) is acting as a support for EURUSD, and if sellers manage to clear it, more losses are possible. We need to see how long the pair can hold the 200 SMA.
Economic Releases to Watch
US Pending Home Sales
Euro Area Consumer Confidence
Let us see how the pair trades in the upcoming week, as if sellers gain control, they might succeed in piercing the 200 SMA support area. The next area of interest in that case could be around 1.0850.
Sell rallies around 1.1110 with a tight stop above 100 SMA (4H).