EUR/USD is hovering at 1.1664 on the 4-hour chart, and its losses are extending after breaking through the 1.1713 support level and slipping underneath the ascending trendline. Now the pair is sitting under both the 50-EMA and 200-EMA – that’s reinforcing the short-term bearish momentum.
What’s caught our eye is the way the rejection from that 1.1833-1.1882 resistance zone formed a lower high, which is just confirming the downside pressure we’re seeing. And that’s got us looking at support at 1.1619, followed by 1.1550. A sustained move below 1.1619 might actually get us on to 1.1493.
And on the flipside, 1.1765 is now a key level of resistance – we’re going to watch that closely, and RSI is drifting down to 35, which is just saying that selling pressure is increasing, but we’re not in oversold territory yet.
Trade Idea: Sell below 1.1680 and aim for 1.1620, place your stop above 1.1765.
