The FxPro Analyst Team

FxPro Forex Analysis: Euro Weakens As Dollar Strengthens

As the USD strengthened, EURUSD plunged this morning, breaking through the significant psychological level at 1.10, the lowest point since 28th June. On the 4 hourly chart, the current price section is below all the EMAs, oscillating between the first downside trend line support at 1.0989 and the 8 EMA resistance at 1.102. it is the same price section as between the middle and the lower bands of Bollinger Band indicator, suggesting that the trend is bearish. Yet the RSI and KD indicators are both around 30, being aware that there might be a rebound prior to the further downturn.

Upside 8 EMA resistance level at 1.102 followed by 20 EMA at 1.1043. Downside first trend line support at 1.0989 followed by the second trend line support at 1.0974, if the latter is confirmed breaking through, further testing the low at 1.097 on 27th June.