EUR/USD: Below 1.12 awaits the downtrend support line at 1.1175

Friday´s four-hour chart is showing the EUR/USD pair is trading alongside a downtrend support line, which is sit at 1.1175, but first it has to break the 1.12 level, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“EUR/USD is trading alongside a downtrend support line that has been accompanying it since mid-June and has become stronger. It currently hits the price around 1.1175 and should provide support. On the other hand, momentum has turned down and EUR/USD has dropped below the 100 Simple Moving Average.” 

“The initial cushion is around 1.12, a round level, and is followed by 1.1175, mentioned earlier. 1.1150 temporarily capped euro/dollar on the way up, and 1.1075 was a support line around late May.” 

“Resistance is at around 1.1265, a resistance line from Thursday, followed by 1.1290, a swing high from earlier in the week and where the 50 SMA hits the price.”