According to Senior Analyst Axel Rudolph, the pair faces potential downside to the 1.1510/08 band.
“EUR/USD has broken down from its converging range. Failure at 1.1575, the July 19 low, on a daily chart closing basis will target the 1.1510/08 May and June lows. Further down meanders the 200 week moving average at 1.1367. The cross remains directly offered below the past couple of weeks’ highs at 1.1745/50”.
“On the topside the key level is 1.1790, the July peak, a recovery above which would target the 38.2% Fibonacci retracement at 1.1855. Above 1.1855 we would look for a deeper retracement to the 55 week moving average at 1.1935 with scope for the 200 day moving average at 1.1976 to be touched as well. There we would suspect the cross to fail, though”.