Prev: EUR/USD Supported at 1.41, Targets 1.43, 1.4450 If US CPI is Subdued and Stress Tests Do Not Stir (7/15)

EUR/USD

- The EU stress test results were not great, but not as bad as anticipated neither.
- However the 1.42 level was defended on Friday, and well defended to start the week as well, as the EUR/USD opened with a gap to the downside.
- Getting deeper into the Asian session, the market is in a declining support.
- The RSI in the 1H chart is breaking below 40, and killing the short-term bullish momentum we established last week. A reading below 30 returns the market to bearish momentum in the short-term.
- The 4H chart shows that the momentum in the medium term is bearish, and remains so as the RSI reading failed to break above 60 last week.
- Notice also the failure to break 61.8% retracement.
- The market looks poised to continue the bearish trend this week, especially if we find the market below 1.4035 after today’s European session.
- Resistance at 1.41 should also add to the likelihood that the EUR/USD will be bearish for the first half of the week.
- The bearish outlook below 1.4035 is the 1.3850 area to 1.3837 low, with a more aggressive bearish target towards 1.3750.

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Fan Yang CMT
Chief Technical Strategist
FXTimes

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.