The EUR/USD pair has dipped below 1.1800 for the first time since December. The move comes after the release of Eurozone final CPI figures, which were in line with estimates. The final CPI was reported at +1.2% on a yearly basis. Adding to the bearish bias is monetary policy divergence between the FED and the ECB, as US treasury yields continue to rise. The key US 10-Year Treasury yield reached 3.095%, its highest level since 2011.
On the daily chart, EUR/USD is attempting to break the psychologically important 1.1800 level. A firm break of this level would open the way to a continuation towards support at 1.1715, which is 38.2% Fibonacci retracement from the lows of November 2016. Further supports will be found at 1.1660 and 1.1590. A bullish reversal and break of 1.1853 is needed to change the outlook, with resistance at 1.9440 and then the 200MA at 1.2050.
In the daily timeframe, EUR/AUD is breaking trend line and horizontal support at 1.5770, which could lead to further downside to supports at 1.5610 and then 1.5490. On the flip-side, a reversal and break of 1.5820 would see an upside move, with resistance at 15940.
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