Forex: EUR/USD: Euro drops to 1.4130 support

EUR/USD returned on Tuesday to test resistance area at 1.4300, and after hitting an 8-week high at 1.4304, the Euro dropped sharply during U.S and Asian sessions to test support level at 1.4130 which has not given way, and the Euro trades around 1.4150 at the moment of writing.

Initial support level lies at 1.4120/30 (Jul 23 and 28 low) and in case of further decline, next potential support levels could be located at 1.4090 and 1.4070 (Jul 9 high). On the upside, initial resistance level could be located at 1.4190/00 intra-day high , and above here, 1.4220 and 1.4260.

EUR/GBP remains moving in a range from 0.8615 to 0.8635, which is being tested at the moment, in case of breaking above here, the Euro could reach 0.8645 and 1.8660. On the downside, support levels lie at 0.8615 and 0.8600.