by FXOpen on February 8th, 2019

EUR/USD in a downtrend throughout the week

The US dollar kept near a two-week high on Friday, as the demand for safe-haven assets rose amid uncertainty about the path of trade negotiations between the US and China and wider concerns about a slowdown in global growth.

Similar concerns were highlighted on Thursday after the European Commission sharply reduced its growth forecasts for the euro area this year. Investor concerns about the global economy were also aggravated by comments of the US President Donald Trump, who said he does not plan to meet with Chinese President Xi Jinping before March 1 to conclude a trade deal in the wake of the trade war.

EUR/USD Technical Analysis

The Euro started a major decline from well above the 1.1450 resistance level against the US Dollar. The EUR/USD pair traded below the 1.1400 support level to move into a bearish zone.

The pair even broke the 1.1380 support and settled below the 50 hourly simple moving average. A low was formed at 1.1324 and later the pair corrected above the 23.6% Fib retracement level of the last decline from the 1.1398 high to 1.1324.

However, there is a strong resistance formed near the 1.1340 level and a bearish trend line on the hourly chart. Besides, the 50% Fib retracement level of the last decline from the 1.1398 high to 1.1324 is a major resistance at 1.1360.

As long as the pair is below 1.1340-1.1360, EUR/USD could decline further. The main supports on the downside are near 1.1320 and 1.1280.

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