EUR/USD Technical Evaluation: Dangers breaching 61.8% Fib of 1.1187 on risk-off
EUR/USD is on the defensive, having breached multi-month buying and selling to the draw back final week and the danger aversion might solely bolster the bearish technical setup, sending the pair beneath key help at 1.1187 (61.8% Fib R of Dec. 216 low – Feb. 2018 excessive).
As seen above, the post-NFP bounce appears to have run its course close to the resistance of the downward sloping (bearish) 50-hour shifting common (MA). Additionally, a bear flag is seen – a sample which frequently finally ends up accelerating the previous bearish transfer. The pair, due to this fact, dangers falling again to Friday’s low of 1.1176.
Sellers did not penetrate 1.1187 (61.8% Fib R of Dec. 2016 low/Feb. 2018 excessive) final week. Nonetheless, with threat aversion and bearish technical setup, that help degree may very well be breached this week.