EURUSD weakened yesterday. There are no positive drivers for the euro. The retail sector in the Eurozone declined, and the euro began experiencing the effects of Brexit.
The euro again came under pressure. This time the EUR/USD fell due to the risk aversion. The pair tried to recover yesterday, but stopped at the mark 1.1100. The immediate support is seen at 1.1000, the resistance stands at 1.1130.
The indicators recommend short positions. The moving averages (50, 100 and 200) are moving downwards. The price touched the 50-EMA in the 4 hours chart. The pair is below the 100-EMA and 200-EMA on the same chart.
The indicator MACD decreased. If its histogram stays in the negative area it will be a signal to sell. RSI moved away from an oversold area. If its signal line turns back to undervalued zone it will be a sell signal.
To trigger further downward movement the pair needs to fall below 1.1050. Alternatively, the EUR/USD will recover to 1.1130. We believe that the euro will remain under pressure until the UK leaves the EU.