The US dollar's strong gains against the Euro have continued today ahead of the sturdy news. The common currency reached a high of more than three week earlier this morning.
This technical analysis of EURUSD looks at the one-hour chart. The highest price that EUR/USD reached for that period was 1.0787 (last bullish wave - top). The lowest price that the EUR/USD pair reached during that period was 1.0648 (right now).
Thus, the EUR/USD pair settled below 1.0715 and is testing the support level at 1.0623. RSI and Moving averages continue to give a very strong sell signal with all of the 50 and 100 EMAs successively above slower lines and below the price.
The 50 EMA has extended further below the 100 this week. Support from MAs comes initially from the value zone between the 50 and 100 EMAs. Industriously, Euro Is Losing ground against U.S. Dollar around +175 pips.
Therefore, the EUR/USD pair is currently trying to settle below the resistance at 1.0715, while the U.S. dollar is gaining ground against a broad basket of currencies.
The EUR/USD pair is testing the support level at 1.0623. If this test is successful, the EUR/USD pair will head towards the next support level at 1.0623.
On the hourly chart, price has now extended far below the 50% area from the daily Fibonacci retracement levels, This area which coincides at the moment with the 100 EMA might be an important support if there's a fairly deep retracement from recent highs (1.0787 and 1.0715).
Conclusively, if the trend breaks the support at 1.0623 (first support) the pair will move down wards continuing the development of the bearish trend to the level 1.0585 in order to test the daily support 2.
The descending movement is likely to begin from the level 1.623 with 1.0585 and 1.0584 seen as targets.
However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.0830.
