Technical Analysis Euro for 8/28/15
EUR/USD posted a second lower low in logging a six-day low at 1.1202. The euro also saw losses against sterling, the Swiss franc, and remained heavy against the otherwise underperforming yen. The euro is likely to seen a bout of sustained losses. ECB member Praet said yesterday that disinflation risks were increasing, which was followed today by a 1.7% decline in German import price inflation, with prices down 0.7% m/m on the back of lower energy prices.
The EUR/USD is poised to test support levels near the low at the 20-day moving average near 1.1130. Although momentum remains positive with the MACD printing in positive territory the trajectory is flattening reflecting a consolidative tone.