Forex Special The hegemonic currency lost ground against the US Dollar as dented risk appetite damaged the healthy uptrend correction for the pair. Investors withdrew its longs to reinstate short positioning strategies on the pair. Current price can be found at 1.2232.
EUR/USD opened at 1.2274 to initially aim for higher bands. However, a steamless run up got exhausted at resistance 1.2290. The bears move to drive the pair lower paid off as the pair fell bottoming at 1.2226 (lowest level since June 23).
According to FXstreet.com Independent Team Analyst: “Asian stocks have taken a dive on worries about Chinas growth. EURUSD topped out at the top of the channel and has moved lower impulsively. You could view this in two ways. Firstly, this is wave three down that should take the pair to 1.2049. Secondly, this is an ABC correction and should take us down to 1.2139. Either way the view is strongly bearish. Support levels: 12253 12209 12172. Resistance levels: 12284 12319 12326”.