EUR/USD has fallen back below the daily cloud base and daily RSI deepens its bear bias as hurdles confront bulls.
U.S./EU trade tensions intensify after Trump rejected the EU's offer to remove auto tariffs while also threatening to withdraw from the WTO.
Below forecast July German retail sales and August EZ HICP remind traders of slower economic growth.
The weaker data prints, especially the HICP, could lead the ECB to lower its inflation projections due in September.
Concerns over Italy's budget and possible ratings reductions have sent DE-IT 10 year yield spreads to their widest in five years while 2 year DE-IT yield spreads hit new wides for August.
Those factors combine to dent the short term bull view for EUR/USD.
Long term charts remain constructive though as a bull hammer candle remains in place for August.
Support in the 1.1530/50 zone is critical for bulls.
As long as EUR/USD can hold ground above that support the risks to the topside remain.
A break below that zone likely indicates the recent bounce has run its course.
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