- The common currency could remain under pressure after bearish outside-day reversal.
- Yuan sell-off will likely keep USD better bid.
The EUR/USD is mildly bid around 1.1650 but may surrender gains in Europe, courtesy of bearish technical setup and Yuan sell-off.
The currency pair closed on a negative note at 1.1638 yesterday, validating Tuesday’s bearish outside-day candle. Thus, the recent low of 1.1508 (June 21 low) stands exposed.
Further, the Chinese Yuan fell to 3.7398 per dollar in Asia, its lowest level since July 28, 2017, on trade-related uncertainty. As a result, greenback – the new safe haven asset – will likely remain bid against the EUR and most majors.
EUR/USD Technical Levels
Resistance: 1.1667 (20-day moving average), 1.1745 (Tuesday’s bearish outside-day candle’s high), 1.1791 (July 9 high).
Support: 1.1602 (previous day’s low), 1.1570 (lower Bollinger Band), 1.1508 (June 21 low).
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