Forex Trading Library

Intraday Analysis – EUR Remains Under Pressure

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EURUSD grinds major support

The euro retreats as a fall in Euro zone inflation would ease pressure on the ECB. On the daily chart, the price is grinding July’s bottom at 1.0840 as this is a critical level to keep the bullish momentum intact in the medium-term. A bearish breakout would trigger a liquidation of positions of those who jumped on the dip, causing a correction towards 1.0700. The bulls will need to lift offers around 1.0910 to ease the pressure first. Then 1.1000 on the daily SMAs is the level to clear before a sustained rebound could happen.

GBPUSD awaits breakout

The pound struggles as July’s retail sales showed a larger-than-expected contraction. The pair is looking to consolidate its base in the key demand zone 1.2600-1.2620. 1.2800 from a previously faded bounce is a major resistance to clear to shake out the sellers and to open the door towards 1.3000. Failing that, the bears may see it as a confirmation that the directional bias is still down and would double down on their bets. A drop below 1.2690 would make Sterling vulnerable to an extended sell-off below 1.2600.

US 30 struggles for support

The Dow Jones 30 falls as investors expect high interest rates for an extended period of time. On the daily chart, the price has pulled back to the upper band (34500) of a previous consolidation range. A series of lower lows with limited upside indicates that buyers have trimmed their exposure, putting the mid-July rally at risk. With the RSI rising back from the oversold area, 34300 is the level to see if the bulls make their way back or are afraid of catching a falling knife. 34850 is a fresh resistance in case of a bounce.


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