Is It Time to Sell EURUSD on Rebounds Below 1.162 as Fed Rate Hike Bets Rise?

EURUSD broke below the 1.16 mark

Last Friday, EURUSD fell sharply, and broke below the 1.160 mark. It ended down 0.6% at 1.1581.

Eurozone economic data failed to meet market expectations

Eurozone Industrial Climate Index (August) rose from -6.1 to -5.3 Vs. -5.2 (forecast), according to the data from the Eurostat.

The USDX rose significantly

Last Friday, as the expectation that the Fed will increase the interest rate in September rose, the USDX climbed significantly. It ended up 0.56%, the highest level in two and a half months, at 99.68.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, EURUSD fell sharply. The bearish market trend prevailed in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that EURUSD will fall further. Investors should focus on whether EURUSD will break through the support at 1.156. It will decline with potential support at 1.150 if it breaks below 1.156.

4-hour chart

On the 4-hour chart, EURUSD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether EURUSD will break through the resistance at 1.162. It will fall if it rebounds but is capped at 1.162.

Key resistance: 1.162,1.166

Key support: 1.156,1.150

Generally speaking, the bearish market trend prevailed in the short term. Investors could sell as EURUSD rebounds during the day.