EUR/USD: Bears do not bath on the beach in August

EUR/USD is trading around 1.1765, after Friday's 0.78% decline, the biggest single-day drop in over four months. Monday's 4-hour chart is painting a mixed picture with critical support looming at 1.17, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“EUR/USD has lost its upward momentum on the 4-hour chart and fell under the 50 Simple Moving Average – both bearish signs. Critical support is at 1.17, a support line from late July, and also where the 100 SMA hits the price.”

“Ahead of 1.17, EUR/USD has some support at 1.1750, Friday's low. Further down, 1.1630 and 1.1545 await the currency pair.”

“Resistance is at 1.1815, a support line from last week, followed by 1.1820, a temporary separator of ranges. The two-year high of 1.1915 is the upside target.”