EUR/USD New York Price Forecast: Euro consolidating losses near 34-month lows

 

 

EUR/USD is trading in a downtrend below its main daily simple moving averages (SMAs) as the market remains under selling pressure near 34-month lows. The market is consolidating losses for the third day in a row. 

 

 

The euro broke below a descending channel while trading below the main SMAs on the four-hour chart. The market is consolidating losses in what most analysts consider oversold condition. The trend remains intact for now and a daily break below the 1.0800 figure can attract further selling towards the 1.0747 and 1.0660 levels. However, as the market is overstretched, a correction up cannot be ruled out. Resistance is seen at 1.0840 and more importantly at 1.0882. Further up lies the 1.0927 level, according to the Technical Confluences Indicator.