- The path of least resistance for EUR / USD looks to the downside.
- US Treasury yields are back to boost the USD.
- The pair is targeting trend line support at 1.1749 on the 4-hour chart, with the RSI bearish.
The bearish bias in the EUR / USD pair remains intact.
Rising inflation expectations continue to drive US Treasury yields, which in turn propels the US dollar at the expense of the euro. Meanwhile, the macroeconomic divergence between the US and Europe remains a drag on the currency pair.
From a short-term technical perspective, EUR / USD is about to form an inverse cup and handle pattern on the 4-hour chart, a pattern with support at 1.1749.
A four hour candle closing below support would validate the bearish formation, opening the doors for a test of the 1.1700 level.
The RSI is flat but remains well below the midline, which suggests there is additional room to the downside.
On the other hand, if the powerful support at 1.1749 holds, the pair could make a solid bounce to test the downslope 21-period simple moving average at 1.1787.
The next resistance from the bulls would then be at 1.1800. Higher up, the downtrend SMA 50 at 1.1849 could be the next hurdle for buyers.
EUR / USD 4-hour chart
EUR / USD additional levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
