- The EUR/USD continues to trend downwards, with highs and lows following a downtrend line since late July.
- The 50% Fibonacci level coincides with the trend line at around 1.0815 and the inflection point of the 100 SMA.
- The stochastic indicator suggests that the buyers are experiencing exhaustion, so a downward trend will confirm the sellers’ control.
Technical analysis of the euro against the dollar indicates that the trend is still bearish, with the 100 SMA falling below the 200 SMA. While the RSI has room to rise, the stochastic indicator is approaching the overbought zone, which suggests that sellers will regain control. The US dollar’s performance may be affected by the US CPI report, as a strong reading could bolster expectations of Fed tightening.