Yohay Elam, an analyst at FXStreet, notes that Thursday’s 4-hour chart is showing that critical support at 1.1720 is in danger as the EUR/USD pair trades at its daily low of 1.1735 at the time of writing.
“Euro/dollar is suffering from downside momentum on the 4-hour chart and trades below the 50 and 200 Simple Moving Averages. However, it is still holding above the 100 SMA, so bulls may still hit back.”
“Critical support awaits at 1.1720, which provided support twice in recent weeks. A break below that level opens the door to 1.1685, which was a separator of ranges in late September, followed by 1.1625 and 1.1610.”
“Resistance is at 1.1770, which was a swing high earlier this week, followed by 1.1810 and 1.1830, both high points in October.”