EURUSD lost the 1.11 handle again as prices reversed sharply yesterday, bringing to a halt the partial rebound from after the June 24 slump. The negative bias is supported by today’s bearish cross of the %K and %D lines of the stochastic oscillator.
Before the sell-off started yesterday, prices had met resistance at around 1.1180, which is the 38.2% Fibonacci level of the May 3 – June 24 downleg from 1.1615 to 1.0910. There was further resistance today at the 23.6% Fibonacci level at around 1.1075 and these levels will likely continue to cap prices should EURUSD move higher in the near term.
To the downside, the nearest support to watch is 1.1020 – a previous support and resistance level. A drop below this level would threaten the June 24 low of 1.0910. However, in the bigger picture, prices remain within their longer-term neutral range that’s been in place since spring 2015.
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