FXStreet (Córdoba) - The EUR/USD is trimming a slight part of today’s losses, having bounced from a fresh 11-month low at the beginning of the New York session.
The EUR/USD broke decisively below 1.3300 and bottomed out at 1.3274 but with the subsequent recovery still capped by 1.3295, former support level, the pair has been confined to a phase of consolidation as investors gear up for the Federal Reserve minutes and keep an eye on Jackson Hole.
EUR/USD technical outlook
“Technically the hourly chart shows 20 SMA with a strong bearish slope above current price, albeit indicators are slightly exhausted in oversold levels”, said Valeria Bednarik, chief analyst at FXStreet. “Nevertheless, price seems to have no aims of correcting higher, while indicators in the 4 hours chart maintain a strong bearish momentum that support a continued decline”.
Bednarik locates next support levels at 1.3250, 1.3210 and 1.3170, while she sees resistances at 1.3300, 1.3330 and 1.3370.