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Euro Currency Remains Under Pressure near 1.1820

Euro

The euro currency is under selling pressure against the U.S. dollar. Right now the sellers seem to be taking a breather around 1.1820 as we head into the Wednesday trade session.

Yesterday, the benchmark EUR/USD currency exchange rate saw its largest daily selloff as the euro currency failed to close above a fall trend line seen on the above daily MT 4 price action chart. This brought the bears back into this Forex market. 

Today the U.S. Federal Reserve Board will publish their monthly monetary policy meeting minutes. Forex traders will be looking for signals of what was said regarding inflation, interest rates and possible tapering of their monthly asset purchase program.

The United States will also publish JOLTS labor data.  Germany is releasing monthly industrial production and France will publish their monthly trade balance. Italy is releasing retail sales numbers for June. The United Kingdom will publish private housing data from Halifax. This is their monthly housing price index (HPI). The Bank of England is watching housing prices closely as they worry about a bubble forming.

Daily Euro Currency Technical Analysis (EUR/USD)

Looking at price action on the above EUR/USD price action chart, the 14 day MACD histogram looks bearish as we head into Wednesday pointing to further possible weakness with the euro currency. The first downside barrier lines up at a falling trend line in play since 5 May.

This falling trend line support lines up at 1.1790. The next layer of technical support lines up at 1.1785 with the key psychological level of 1.18 then coming into focus. A sustained close below 1.18 opens the door for 1.1785. The next downside barrier lines up at 1.17 which was the low price level in March 2021.

On the upside, the above mentioned trend line comes into play at 1.1890 with 1.19 coming into play next. There is a congestion zone at 1.1990 to 1.20. A daily close above the psychological level of 1.20 opens the door to challenge 1.21.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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