EUR/USD Technical Analysis: In consolidative mode near term. Further retracement expected below resistance line

• EUR/USD is prolonging the recovery from Friday’s lows in the 1.1620 region amidst a continuation of the selling mood around the greenback.
• The outlook remains offered as long as it trades below the short-term resistance line – today at 1.1732 – and July’s top at 1.1792.
• On the downside, the 21-day SMA at 1.1689 offers initial contention. This area is reinforced by the base of the daily cloud.
• Furthermore, EUR/USD could be carving a descending triangle.

EUR/USD daily chart

Daily high: 1.1732

Daily low: 1.1700

Support Levels

S1: 1.1663

S2: 1.1619

S3: 1.1591

Resistance Levels

R1: 1.1735

R2: 1.1763

R3: 1.1807