EUR/USD is trading well under 1.18, a two-week low, as a cautious market mood boosts the safe-haven dollar. Worries about rising US inflation, the Fed's tapering intentions and German elections are pushing the pair lower.
Euro/dollar is suffering from downside momentum on the four-hour chart and has dropped under the 200 Simple Moving Average. These developments join the bread below two trend lines. At the time of writing, the Relative Strength Index (RSI) is above 30, thus outside oversold conditions and allowing for more falls.
Support awaits at 1.1780, a stepping stone on the way up in late August. It is followed by 1.1740, 1.1725, 1.1695 and 1.1660.
Some resistance is at 1.1815, the daily high, and then by 1.1850, the swing high recorded last week. Further above, 1.1885 and 1.1910 are eyed.
