EUR/USD Forecast: lower lows for the year around the corner

  The EUR/USD pair fell down to 1.0699 this Wednesday, bouncing modestly afterwards, but maintaining the soft tone in the London morning. Stocks continue consolidating as the Trump euphoria receded, with European index trading modestly lower, but not far from their opening levels. The USD 10Year yield is above 2.20%, after a brief decline, underpinning the greenback.
There are no macroeconomic news in the EU scheduled for this Wednesday, but the US will release its October PPI figures, and its latest industrial production data, generally expected to have improved from the previous month.  

Technically, the pair has been meeting selling interest around 1.0760 ever since the day started, and in the 4 hours chart, the 20 SMA continues heading sharply lower above the current level, in line with the ongoing bearish tone, offering now a dynamic resistance around the mentioned high. In the same chart, the RSI indicator is flat near oversold readings, while the Momentum indicator diverges from price action, higher within negative territory, not  enough to confirm an interim bottom.
Renewed selling interest below the 1.0700 mark should see the pair extending its slide down to 1.0640/60, particularly if US data continues surprising to the upside, with further slides pointing to a test of 1.0600. Beyond the daily high, the pair can correct up to 1.0800, where selling interest will likely re-appear.

Comments (1)

  1. Rebalcolo Jun 18th 2019

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