The euro currency was relatively weak for the most part on Wednesday. This came largely due to the stronger greenback. Lack of economic data saw investors focusing on the bond markets. After the Italian political crisis, the focus was on the German 30-year bond yields which turned negative. Investors anticipate the ECB to announce its stimulus program in September.
EUR/USD Could Extend Declines Below 1.1065
The currency pair has been consolidating near the resistance level of 1.1100. This comes as the Stochastics oscillator is forming a hidden bearish divergence. The declines could be extending to the support area at 1.1065. A breakdown below this level will potentially accelerate the downside. The next lower support in EURUSD is at 1.1008.
