FX.co ★ EUR/USD analysis for September 17 2020 -Third downside target at the price of 1.1756 has been reached. Potetnial for further downside towards 1.1700

Eurostat - 17 September 2020

Prior -0.2%

• Core CPI 0.4% vs 0.4% y/y expected
• Prior 0.4%

The ECB revised their growth projections higher for 2020 to -8.0% and inflation expectations for 2021 were revised up to 1.0% at the last meeting. Inflation here is as expected, but still at multiyear lows from 2017.

ECB's Rehn across the wires just prior to this release saying ECB ready to use all instruments if data is not in line with goal. This data is showing inflation is depressed.

As I discussed in the previous review, the EUR managed to test our third downside target at the price of 1,1755.

Further Development

Analyzing the current trading chart of EUR/USD, I found tthat sellers are still active and that EUR got beari flag on the hourlt time-frame, which is sign for the potential downside continuation.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got VIX and Sugar today and on the bottom Platinum and Silver.

Key Levels:

Resistance: 1,1810

Support levels: 1,1760 and 1,1705.