FXStreet (Edinburgh) - The shared currency extends its intraday decline on Wednesday, now dragging the EUR/USD to test sub-1.3530 levels.
EUR/USD in multi-week lows
Poor domestic data from the euro bloc and mainly from Germany plus an incipient recovery of the greenback are behind the current weakness in the pair, which keeps challenging levels last seen in mid-June. According to Camilla Sutton, Chief FX Strategist at Scotiabank, the short term technicals are bearish, adding, “suddenly technical studies have taken a bearish turn, with spot break below support and the MACD warning of a building downside move. We expect the recent low of 1.3503 to hold; but a break below would open up a test of 1.3477 followed by 1.3400”.
EUR/USD levels to consider
At the moment the pair is down 0.26% at 1.3531 with the next resistance at 1.3572 (high Jul.16) followed by 1.3600 (psychological level) and finally 1.3605 (30-d MA). On the flip side, a breakdown of 1.3512 (low Jun.12) would open the door to 1.3503 (low Jun.5) and then 1.3482 (low Feb.6).