EUR/USD: scope for further declines – FXStreet

FXStreet (Barcelona) - According to Valeria Bednarik, Chief Analyst at FXStreet, EUR/USD technical indicators suggest further downside might be expected in the pair.

Key Quotes

“The EUR/USD pair flirted with the 1.1200 level, before the release of US housing data. Building Permits rose to its highest since 2007, albeit housing starts fell 11.1% in May vs. est. -4%.”

“The dollar came under some limited pressure after the release, with the pair bouncing its low but maintaining a bearish tone in the short term, as the 1 hour chart shows that the price remains below its moving averages, whilst the technical indicators head south in negative territory.”

“In the 4 hours chart, the price is now below a mild bearish 20 SMA, whilst the Momentum indicator remains flat around the 100 level, and the RSI indicator anticipates additional declines, heading lower around 45.”

“Support levels: 1.1200 1.1160 1.1120”

“Resistance levels: 1.1245 1.1290 1.1330”

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