The Euro continues its fall against the Dollar
(Investing.com) – After having fallen sharply yesterday in response to a high at 1.1223 in the morning, the pair EUR/USD has consolidated around 1.1175 during the night, and resumed its decline on Friday morning with a new low on 1.1158, the lowest since almost 15 days.
The plunge of the pair GBP/USD is involved without doubt the downward pressure that weighs on the pair EUR/USD this morning, although the rise in the Dollar, as seen on the Dollar Index is also a factor mechanically bearish.
The Book has in fact accentuated even more losses in the past few hours, with a low of 1.2758, the lowest since January 15 against the backdrop still quite uncertain in regards to the Brexit.
It should be noted that in this context, the Euro has ignored the good surprise of the european inflation with a CPI core was 1.3% against 1.2% is anticipated for the final data in the month of April.
From a technical point of view, it should be noted that the sellers remain in control in the short term as prices remain below the two moving averages hourly key (100 and 200).
In addition, the moving average 100 hours has just crossed under the moving average 200 hours, which is a sell signal.
The break under the support of 1,1167-70 was limited to the drops for several days is a signal a technical bear additional.
The next support now lies at 1,1150, then the lowest of the 3 may to 1,1135.
The increase, the area of 1,1200-10 (psychological threshold and MM100 and 200 hours) is likely to provide a strong key resistance, before 1.1220-25, 1.1250, 1.1265 and 1.13.
Finally, it should be noted that forex traders are still waiting for the consumer confidence index US, according to the University of Michigan (16h, in view of a potential influence on the Dollar.