EUR/USD is consolidating early losses, bouncing just modestly from around the 1.1700 figure. The safe-haven dollar is in demand as the crisis around China's Evergrande deepens and a global slowdown is feared. Tensions toward the Fed decision and also Germany's elections are taking their toll too.
The EUR/USD pair trades near this year low of 1.1663, oversold in the near term. The risk, however, remains skewed to the downside. In the 4-hour chart, the pair is developing below all of its moving averages, with the 20 SMA heading firmly lower below the longer ones. Technical indicators remain near daily lows, with the Momentum bouncing just modestly. Chances of a corrective advance are limited, while renewed selling pressure below 1.1700 should lead to a retest of the mentioned 2021 low.
Support levels: 1.1700 1.1660 1.1620
Resistance levels: 1.1755 1.1780 1.1820
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