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EUR/USD Looks Set to Drop Below 1.1780

July 19, 2021

  • EUR/USD recovery struggles and could decline further below 1.1780.
  • A bearish trend line forms resistance near 1.1820..

The Euro-US Dollar pair remains in a bearish zone below the 1.1850 resistance level. The pair has struggled to remain above 1.1800 and could now drop further below 1.1780.

 

EUR/USD 4-Hour Chart (Trend: BEARISH)

On the 4-hour chart, the quote has been following a bearish decline from a swing high of 1.1975. It is now positioned below the 1.1850 level, the 100-MA (red), and the 200-MA (blue).

The quote is currently struggling to stay above the 1.1800 and 1.1780 support levels. A close below 1.1780 would likely trigger a sharp decline. If this were to happen, the pair could test support at 1.1770. Further losses could drive the pair towards the next support at 1.1720. 

On the upside, a significant bearish trend line has formed, with resistance near 1.1820. If the quote can close above this trend line, the pair could possibly climb up towards 1.1850 and the 100-MA. If the quote then continues above 1.1850, it is possible it may even recover above 1.1900.

 

 

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