The single currency has continued to correct lower against the U.S dollar during much of Wednesday’s European trading session, with price-action hitting 1.1938, setting a fresh daily trading low.
After yesterday’s surge towards 1.2070, buying demand above the 1.2000 level is lacking today, following a sharp risk-reversal. Traders are now position squaring, ahead of key economic data from Germany, and the United states.
The EURUSD pair is turning further bearish on an intraday basis, after falling below the 1.1960 support level, with price now trading between 50 and 100-hour moving averages.
Key technical support is found at the 1.1916 level, which represents key trendline and moving average support. Below the 1.1916 level, the euro risks further losses towards 1.1865 and 1.1844.
To the upside, key technical resistance is found at 1.1960 and the 50-hour moving average, at 1.1980.
Above 1.1980, the 1.2000 level comes into focus, with 1.2030-40 the key upside region to watch.
