EURUSD – Euro Looks Set To Extend Declines Vs US Dollar

Key Points

  • The Euro declined heavily recently and traded below the 1.1160 support against the US Dollar.
  • There are two bearish trend lines with resistances as 1.1140 and 1.1157 formed on the hourly chart of EURUSD.
  • Today in the Euro Zone, the European Central Bank (ECB) announced (June 21, 2017) Governing Council meetings.
  • The outcome failed to help the EURUSD pair as it kept pressuring the 1.1120 support area.

EURUSD Technical Analysis

The Euro started a decline from the 1.1295 swing high against the US Dollar and broke many supports on the way down like 1.1200. The pair also settled below the 21 hourly simple moving average and the 1.1160 support.

The pair recently traded as low as 1.1121 from where it is attempting a recovery. On the upside, there are two bearish trend lines with resistances as 1.1140 and 1.1157 formed on the hourly chart.

Furthermore, the 38.2% Fib retracement level of the last decline from the 1.1216 high to 1.1121 low is also likely to act as a resistance for the pair on the upside at 1.1157.

ECB Governing Council meetings

Today in the Euro Zone, the European Central Bank (ECB) announced (June 21, 2017) Governing Council meetings.

The meetings had nothing much for the Euro, and the EURUSD kept pressuring the 1.1120 support area. The ECB in a report “The recent evolution of global risks – an assessment”, stated that “Risks of an abrupt shift in global financial conditions appear to have eased but not disappeared. Since the “taper tantrum” episode in 2013, when expectations regarding US monetary policy shifted abruptly, a combination of careful communication and a very gradual approach to monetary tightening by the US Federal Reserve System appears to have mitigated such risks somewhat“.

Overall, the EURUSD pair may continue to struggle and rallies towards 1.1150-60 are most likely to face sellers.

Original Article