EUR/USD heads to the 1.1750 critical support

EUR/USD is prolonging the downside for the seventh session in a row and Wednesday's 4-hour chart is showing that critical support at 1.1750 is in danger, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“EUR/USD is trading above the critical 1.1750 level which was a slow point in mid-August and also in early September. Falling below that line would send it to the lowest in nearly a month. It is followed by 1.17, a stubborn support line from earlier last month, and then by 1.1625 and 1.1540.” 

“Immediate resistance is at 1.1785, the daily high, and at around 1.1805 – where the broken uptrend support line awaits. The next line to watch is 1.1860, which capped it earlier this month.”

“The fall below the trendline is a bearish development, joined by downside momentum on the four-hour chart and the drop below the 200 Simple Moving Average. The Relative Strength Index is still above 30 – outside oversold conditions, thus allowing for more falls.”