EUR/USD to extend the decline towards last week lows in the 1.1750/60 zone

The EUR/USD pair has extended its Tuesday’s decline amid renewed dollar’s demand and is now trading near the 1.1834 daily low. The world’s most famous currency pair could test last week lows in the 1.1750/60 price zone, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The US released the August ADP survey, which showed that the private sector added 428K new jobs, below the 950K expected, although better than the previous 212K. Despite the disappointing number, the American currency seems to be holding on to its bullish stance.”

“Germany published July Retail Sales, which declined in the month 0.9%, worse than the 0.5% advance expected. The EU unveiled its July PPI, which was up 0.6% MoM and down 3.3% when compared to a year earlier. The positive market mood that dominated the first half of the day, however, seems to be fading, as stocks’ indexes are retreating from early highs, yet still in the green.”

“The 4-hour chart shows that EUR/USD is finding short-term support around a flat 100 SMA, although below the 20 SMA. Technical indicators have stabilized near daily lows within negative levels.”

“As EUR/USD has lost the 1.1840 level, the pair has room to extend its decline towards the 1.1750/60 price zone, where it has some relevant lows from last week.”

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