EUR/USD Technical Analysis: further decline on the cards following Tuesday’s bearish ‘outside day’.

• The pair is down for the second consecutive session so far on Wednesday, accelerating the downside after failing to extend the bullish attempt beyond 1.1750 on Tuesday.
• Strong resistance area lies in the 200-hour SMA ahead of the 1.1720/50 band, coincident with the base of the daily cloud, a Fibo retracement of the April-May descent and December 2017 lows.
• Following the breakdown of the 21-day SMA, spot came under heavy selling pressure, intensified today after it charted a bearish ‘outside day’ yesterday. That said, the door is now open for an initial test of the 1.1530 area, considered the latest defense of 2018 lows at 1.1508 seen in late May.

EUR/USD daily chart

Daily high: 1.1665

Daily low: 1.1602

Support Levels

S1: 1.1625

S2: 1.1589

S3: 1.1529

Resistance Levels

R1: 1.1721

R2: 1.1781

R3: 1.1817