The technical picture in EUR/USD isn’t pretty for buyers
With the break below the 1.1100 handle overnight, the main focus now will be whether or not we will see a move go below the pivotal 1.1000 handle. Looking at the chart above, there isn’t much swing region support either preventing the pair from falling further.
The 1.1000 handle will be a key area for buyers to lean on but beyond that it’s tough to pick a bottom if sellers build on further momentum to the downside.
The weekly chart offers a better view and we can see that there is also an added trendline support around 1.0985 currently for the pair. But much like the daily picture, a break below that and 1.1000 sees little in the way of the pair from posting a further drop.
Central bank rhetoric remains a key focal point ahead of September and with the Fed looking to stick to an “insurance” policy while the ECB looks to add more stimulus, the divergence could lend further tailwind for sellers to push EUR/USD lower.