EUR/USD Finds Support at 1.1500
The decline of the EUR/USD pair from 1.1615, the highest level since August.2015, found support at the 1.1500 handle.
The euro started to pullback and accelerated to the downside on American hours amid a stronger US dollar across the board. It erased gains and bottomed at 1.1499. Currently, it trades at 1.1510/15, less than 20 pips below the level it closed yesterday. The recent recovery from the lows found resistance at 1.1535/40.
EUR/USD is falling after rising during six trading day in a row. It is the first bearish correction after rallying 400 pips from last week lows to today’s high.
EUR/USD technical outlook
According to Valeria Bednarik, Chief Analyst at FXStreet, today’s downward knee-jerk seems to have been merely corrective. “As in the 4 hours chart, the price remains far above a bullish 20 SMA, currently in the 1.1460 region, whilst the RSI indicator is resuming its advance after erasing extreme overbought conditions. Furthermore, and given the recent break above a major resistance, now support at 1.1460, the pair needs now to break below the 1.1380/1.1420 region to negate the ongoing bullish trend”.
Resistance levels come at 1.1565, and an upward extension beyond it should favor a retest of the recent high, en route to 1.171 (August 2015 high) explained Bednarik.