EUR/USD faces worst weekly loss since November 2016, creates bearish outside-week candle

• The EUR/USD is down 1.7 percent from last Friday's close of 1.1767-  its worst weekly loss since November 2016.
• ECB's dovish taper, fears of a trade war and hawkish Fed rate hike will likely keep the EUR under pressure on the last trading day of the week.
• The common currency has created a bearish outside-week candle, signaling the sell-off from 1.2556 has resumed.

Currently, the EUR/USD pair is trading at 1.1567 - down 1.7 percent week-on-week - its worst weekly losses since November 2016.

ECB's Draghi pulled the plug on the QE program yesterday, still, the EUR dropped more than 200 pips as the central bank head pushed out the first rate hike to end 2019. The QE taper gives the EUR an edge over the Japanese Yen but does little to support boost EUR/USD exchange rate as the Fed is planning to hike rates at a faster rate and the ECB is at least 1.5-years away from the rate hike.

Bearish revival

The EUR created a bearish outside-day candle yesterday. Further, the weekly chart also shows a bearish outside-week candle, indicating the rally from the recent low of 1.1510 has ended and the bears have regained control. So, EUR/USD could have a relook at 1.15 and could possibly break lower to 1.1412 (200-week moving average)

EUR/USD Technical Levels

Resistance: 1.1585 (resistance on hourly chart), 1.1673 (descending 50-hour moving average), 1.1690 (5-day moving average).

Support: 1.1510 (May 29 low), 1.1423 (100-week moving average), 1.1412 (200-week moving average).