The euro risks further losses against the U.S dollar in Wednesday trading, with sentiment surrounding the euro remaining weak. Buying demand above the 1.1800 level is currently still lacking, after yesterday’s steep decline to 1.1754.
Today’s key risk event for the EURUSD pair will be the release of the Trump administrations tax reforms, the reaction to the proposed reforms will likely create tremendous volatility in the U.S dollar index.
Going forward, the EURUSD pair remains strongly intraday bearish while trading below its 50-day moving average, currently located at 1.1867.
Key intraday technical support is found at 1.1774, 1.1754 and the August 21st price-low, at 1.1731. Below 1.1731, key monthly support is found at the euro’s 200-week moving average at 1.1716, and the former monthly price-low, at 1.1662.
To the upside, intraday rallies in the EURUSD pair should find resistance from the daily pivot point, at 1.1804, and the September 9th swing-low, at 1.1838. Above 1.1838, further euro resistance is found at 1.1851 and 1.1867.
.
