EUR/USD: Steeper decline expected once below 1.1790
The EUR/USD pair is trading marginally lower this Monday, easing towards 1.1800, as the dollar retains its strength, but holidays in the US and Canada keep volumes at minimums, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“Germany published July Industrial Production, which advanced 1.2% in the month, worse than the 4.8% expected. It was worse when compared to a year earlier, as it declined 10% against a 12.1% advance expected. Given the holidays, the macroeconomic calendar will remain empty for the rest of the day.”
“The 4-hour chart for the EUR/USD pair is showing an increased bearish potential. Sellers are aligned around a bearish 20 SMA, which remains below the 100 SMA. The Momentum indicator hovers around its midline, but the RSI resumed its decline within negative levels, all of which keeps the risk skewed to the downside.”
“The bearish case will be firmer on a break below 1.1790, the immediate support level.”