EUR/USD extends decline, threatens break of 200-hour moving average

Technical Analysis

Author: Justin Low | eurusd

EUR/USD touches a low of 1.1531 on the day

The dollar is picking up some traction across the board and is pushing higher against the rest of the major bloc - barring the yen - and with that, EUR/USD has now slipped to its lowest level in almost a week with price threatening a break of the 200-hour MA (blue line) @ 1.1540 after having broken below the 100-hour MA (red line) in trading earlier today.

If sellers are able to hold a break below the 200-hour MA, then near-term price bias turns more bearish for the pair. There is some support to be seen around 1.1535 as well but a break of the hourly moving averages will indicate a change in the winds and a further downside move will be more favoured.

It's a tricky time for markets once again with the dollar seeing bids with US equity futures trading lower ahead of the cash market open later in the day. Correlations are starting to feel all over the place again but so far currencies have remained calm despite the downturn in equity futures.

But the fall in major currencies against the dollar is also seen against the yen as yen pairs are near the lows for the day across the board, so it is making for some messy trading. Is the dollar making a return as a haven currency? Let's see when US traders come in later before delivering the final verdict.

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