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EUR/USD Analysis: Shedding Ground As U.S. Dollar Rises

By Jason MaynardForexSep 18, 2021 11:36AM ET
www.investing.com/analysis/eurusd-analysis-shedding-ground-as-us-dollar-rises-200602326
EUR/USD Analysis: Shedding Ground As U.S. Dollar Rises
By Jason Maynard   |  Sep 18, 2021 11:36AM ET
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Just like GBP/USD, at the moment our vision also is bearish on the EUR/USD pair.

At time of writing, EUR/USD is trading well under 1.18, a two-week low, as a cautious market mood boosts the safe-haven dollar. Worries about rising US inflation, the Fed's tapering intentions, and German elections are pushing the pair lower.

EUR/USD shed ground for the second session in a row and was breaking below the key support at 1.1800 to record new multi-week lows in the vicinity of 1.1770. The renewed weakness surrounding the pair comes in response to the continuation of the recovery in the dollar, which in turn pushes the US Dollar Index (DXY) to fresh peaks in levels just shy of the 93.00 barrier.

On the daily chart, price rallied through the descending channel but met resistance at 1.19090. It broke the ascending line of support it was following throughout the rally and plunged down to to the resistance line of the horizontal channel, failed to flip it to support and was trending below it.

The Target should be around 1.16630 (or 1.17000). Note that it’s almost like the price has formed a missed double top on the daily so the short entry should probably be around 1.18000/18200 which corresponds to zone 61.8 fibo.

EUR/USD levels to watch

So far, spot is losing 0.16% at 1.1790 and faces the next up barrier at 1.1909 (monthly high Sept. 3) followed by 1.1937 (100-day SMA) and finally the 1.2000 (psychological level). On the other hand, a break below 1.1774 (low Sept. 13) would target 1.1704 (monthly low Mar. 31) en route to 1.1663 (2021 low Aug. 20).

EUR/USD Daily Chart
EUR/USD Daily Chart

EUR/USD Analysis: Shedding Ground As U.S. Dollar Rises
 

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EUR/USD Analysis: Shedding Ground As U.S. Dollar Rises

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