EUR/USD looks near to break the critical double-bottom of 1.17

The EUR/USD pair is trading at 1.1728, representing a 0.10% decline on the day, as Wednesday's 4-hour chart is showing bears are gaining strength. Yohay Elam, an analyst at FXStreet, remarks the critical support at the double-bottom of 1.17.

Key quotes

“EUR/USD has dropped below the 100 Simple Moving Average on the 4-hour chart, another bearish sign, joining the loss of the 50 SMA. Momentum remains to the downside and the Relative Strength Index is above 30, outside oversold conditions.” 

“Critical support awaits at the double-bottom of 1.17, recorded in recent weeks. Beyond that line, 1.1625 was a stepping stone on the way up, 1.1540 was a swing low and 1.1510 provided support in mid-July.”

“Resistance is at 1.1750, which provided support last week, followed by 1.1805, which capped EUR/USD on Tuesday. Next, 1.1850 and 1.1915 await the currency pair.”