EUR/USD to lose another uptrend support

Friday's 4-hour chart is showing a worsening picture for bulls as EUR/USD trades below the 200-SMA and momentum turned negative. Yohay Elam, an analyst at FXStreet, sets support for the pair at the 1.1250 level.

Key quotes

“On its way down, EUR/USD slipped below the steep uptrend support that had accompanied it since early July. It is still holding above the more moderately shaped uptrend support that dates back to May.” 

“Momentum on the 4-hour chart has turned negative and EUR/USD dropped below the 200 Simple Moving Average. Nevertheless, it is holding above 100 and 200 SMAs.” 

“The moderate uptrend support line awaits around 1.1250. It is followed by 1.1220, a stepping stone on the way up. The 1.1190 level cushioned EUR/USD several times last week and it is followed by the mid-June trough of 1.1160.” 

“Resistance is at 1.13, the round level that capped it last week. The former triple-top of 1.1350 is next, and July's high of 1.1375 follows.”