EUR/USD: 1.3150, next big support

by Admin

The EUR/USD extended its decline today, as PMI data again disappointed in the EU, missing expectations and pointing for a downturn in the economic outlook of several individual economies. The EUR/USD fell so far to a daily low of 1.3166 with the 4 hours chart showing a healthy bearish momentum coming from technical indicators: despite in oversold territory, RSI continues heading south, which suggest the selloff is far from over . Bigger time frames show a strong congestion area around 1.3150, next big support. The pair may be reluctant to break lower after falling straight over 270 pips, yet as long as below 1.3200 now, the downside continues favored: following some consolidation, a break and acceleration below 1.3150 will only fuel the bearish rally, with 1.3080/1.3100 as immediate target. A daily close below 1.3150, should left doors open for a sub 1.30 run over the next few days, with 1.2880 then at sight.

Upward corrective movements may extend up to 1.3240/60 area, where selling pressure will likely resume.

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