EURUSD Bears Targeting the Yearly Lows
EURUSD continues south for fourth consecutive day breaking below the 1.11 mark that opens the way for a visit to yearly lows at 1.1020, in the light of German and EU growth concerns; Eurozone June trade balance came in at €17.9 billion versus expectations of €18.5 billion the prior reading was at €20.2 billion. The German economy shrank by 0.1% in the second quarter from the previous quarter as expected. Eurozone GDP growth slowed from 0.4% during the first quarter to 0.2% in the Q2, 2019. The German ZEW Economic Sentiment came in at -44.1 below expectations of -28.5 for August, the Current Situation came in -13.5 also below expectations of -7 in August.
Bears are in control now as the pair trades below all the major daily moving averages. The pair will meet support at 1.1069 the low from August 2nd, and then at 1.1026 the yearly low. On the upside immediate resistance stands at 1.1111 today’s high and then at 1.1130 the 50 hour moving average, a break above can lead prices up to 1.12 zone.
Intraday traders might initiate a long position if the pair manages to break above the 1.1111 top targeting the 1.12. A stop loss to 1.1169 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 1.10 mark can be initiated if the pair cross below 1.1169 recent low, with a stop loss order at 1.12. In the case EURUSD breaks below 1.1169 the downward move will accelerate down to 1.1026 yearly low and then at 1.0950.