EUR/USD: Break below 1.1170 to accelerate the slump

EUR/USD is trading just above the 1.12 level as upbeat US macroeconomic figures have not limited USD gains. The slide could extend if the pair breaks below the 1.1170 support, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“US macroeconomic figures were pretty encouraging, as Durable Goods Orders came in at 15.8% in May, much better than anticipated, while Q1 GDP was confirmed at -5.0%. Initial Jobless Claims for the week ended June 19 were above expected, at 1.48M, while the Continuing Jobless Claims for the week ended June 12 improved to 19.552 M. The news had a limited impact on the dollar, which retains its strength against most of its major rivals.”

“In the 4-hour chart, EUR/USD is below its 20 and 100 SMA, which hover around the immediate Fibonacci resistance at 1.1270. Technical indicators head firmly lower within negative levels, supporting a bearish extension. particularly if the pair breaks below critical Fibonacci support at 1.1170, the 38.2% retracement of its latest daily advance.”