EUR/USD crashes toward 1.18: forecast for 13 July

  • EUR/USD extends the weekly leg lower to the 1.1830 area.
  • The 1.1780 zone remains a magnet for bears.

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EUR/USD has tumbled rapidly toward 1.18 as US inflation hit 5.4% YoY in June, far above 4.9% expected. Core CPI also accelerated to 4.5%, above 4% estimated. The dollar is rising across the board.

The EUR/USD pair approaches the 1.1800 level post-US inflation data, offering a bearish stance in the near-term. The 4-hour chart shows that the pair has broken below its trendline support, which anyway maintains a bullish slope. Technical indicators accelerated their declines, entering negative levels and in line with another leg lower once the pair breaks below the 1.1800 threshold.

While the upside remains capped by this area, further pullbacks are likely. Against this, the next stop on the downside comes in at the so far monthly lows around 1.1780 (July 7). This area of contention is reinforced by the 2020-2021 support line.

Support levels: 1.1795 1.1750 1.1710

Resistance levels: 1.1840 1.1885 1.1920

The material has been provided by InstaForex Company - www.instaforex.com

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