- EUR/USD is extending weakness for the 4th straight week, trades 0.28% lower on the day.
- Firmer USD and a drop in Eurozone Sentix likely to keep downside pressure intact.
- Eurozone Sentix Investor Confidence index dipped to 19.2 for May missing forecasts at 21.0.
- Bears strongly in control, the pair is consolidating below 200-DMA at 1.2017, bias lower.
- Technical studies support further weakness in the pair. We see scope for test of major trendline support at 1.1855.
- Breakout below 1.1855 to see further weakness. Next major bear target below 1.1855 lies at 38.2% Fib at 1.1709.
- On the flipside, 200-DMA is immediate resistance. Retrace and close above could negate bearish bias.
Support levels - 1.1854 (converged 1W 55-EMA and major trendline), 1.18, 1.1709 (38.2% Fib)
Resistance levels - 1.2017 (200-DMA), 1.2032 (23.6% Fib), 1.2125 (5W SMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -65.7077 (Neutral), while Hourly USD Spot Index was at 104.454 (Bullish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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