EURUSD Bears Looking for a Break Below 1.1066
EURUSD is trading 0.04% lower, registering the sixth consecutive session with losses, at 1.1075. United States Redbook Index (year over year) climbed from previous 4.4% to 4.9% for August 16, the monthly reading for the Redbook Index came in at -1.7% versus -2%.
Bears are still in control now as the pair trades below all the major daily moving averages. The pair will meet support at 1.1069 the daily low and then at 1.1066 the low from August 16nd, before an attempt to 1.1026 yearly low. On the upside immediate resistance stands at 1.1088 today’s high and then at 1.1107 the 100 hour moving average, a break above can lead prices up to 1.1151 the 200 hour moving average.
Intraday traders might enter a long position if the pair manages to break above the 1.1088 top targeting a break above 1.11. A stop loss at 1.1069 must also be placed for reducing the downside risk as that will signal possibly a move down to 1.10 area.
A short position targeting the YTD low may be initiated if the pair crosses below 1.1066, with a stop loss order at 1.11. All in all bears are in control and if EURUSD breaks below 1.1166 the downward move might accelerate down to 1.1026 yearly low and then at 1.0950.