EUR/USD Forecast: A slide sub-1.1700 still on the table
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFEREUR/USD Current price: 1.1723
- Risk-aversion pushed the greenback to fresh monthly highs against most major rivals.
- Concerns revolve around Chinese financial stability and how it could affect global growth.
- EUR/USD could extend its decline towards the 2021 low at 1.1663.
The EUR/USD pair ends Monday with modest losses in the 1.1720 price zone, after trading as low as 1.1699, a fresh September low. Market participants rushed into the greenback in a risk-averse environment, worried about a possible setback in China’s economic growth, which in turn could affect progress in other major economies.
The focus was on the Evergrande Group, Chinese second-largest property developer by sales. Shares of the company plummeted at the weekly opening by over 10%, as the company faces a possible default. Concerns revolve around Evergrande’s $305 billion of liabilities that may hurt the country’s financial system.
On the data front, the macroeconomic calendar has nothing relevant to offer on Monday. Germany published the August Producer Price Index, which was up by 1.5% MoM and 12% YoY, spurring mild concerns about inflationary pressures in the EU. On the other hand, the US released the NAHB Housing Market Index, which improved to 76 in September from 75 previously.
The EU will not publish relevant macroeconomic figures on Tuesday, while the US will release August Housing Starts and Building Permits.
EUR/USD short-term technical outlook
ACCORDING TO THE DAILY CHART, the EUR/USD pair is technically bearish, as the pair remains below all of its moving averages, with the 100 and 200 SMAs gaining bearish strength. Furthermore, the Momentum indicator keeps heading south while the RSI consolidates around 37, without signs of a possible directional change. At the same time, the pair trades below the 61.8% retracement of its latest daily advance at 1.1755, the immediate resistance level.
The 4-hour chart shows that the 20 SMA heads firmly lower, converging with the mentioned Fibonacci resistance level. The Momentum indicator recovered within negative levels, still heading higher, while the RSI indicator consolidates around 35, reflecting limited buying interest. The pair will likely accelerate its slump on a break below 1.1700, eyeing then 1.1663, the 2021 low.
Support levels: 1.1700 1.1660 1.1620
Resistance levels: 1.1755 1.1780 1.1820
EUR/USD Current price: 1.1723
- Risk-aversion pushed the greenback to fresh monthly highs against most major rivals.
- Concerns revolve around Chinese financial stability and how it could affect global growth.
- EUR/USD could extend its decline towards the 2021 low at 1.1663.
The EUR/USD pair ends Monday with modest losses in the 1.1720 price zone, after trading as low as 1.1699, a fresh September low. Market participants rushed into the greenback in a risk-averse environment, worried about a possible setback in China’s economic growth, which in turn could affect progress in other major economies.
The focus was on the Evergrande Group, Chinese second-largest property developer by sales. Shares of the company plummeted at the weekly opening by over 10%, as the company faces a possible default. Concerns revolve around Evergrande’s $305 billion of liabilities that may hurt the country’s financial system.
On the data front, the macroeconomic calendar has nothing relevant to offer on Monday. Germany published the August Producer Price Index, which was up by 1.5% MoM and 12% YoY, spurring mild concerns about inflationary pressures in the EU. On the other hand, the US released the NAHB Housing Market Index, which improved to 76 in September from 75 previously.
The EU will not publish relevant macroeconomic figures on Tuesday, while the US will release August Housing Starts and Building Permits.
EUR/USD short-term technical outlook
ACCORDING TO THE DAILY CHART, the EUR/USD pair is technically bearish, as the pair remains below all of its moving averages, with the 100 and 200 SMAs gaining bearish strength. Furthermore, the Momentum indicator keeps heading south while the RSI consolidates around 37, without signs of a possible directional change. At the same time, the pair trades below the 61.8% retracement of its latest daily advance at 1.1755, the immediate resistance level.
The 4-hour chart shows that the 20 SMA heads firmly lower, converging with the mentioned Fibonacci resistance level. The Momentum indicator recovered within negative levels, still heading higher, while the RSI indicator consolidates around 35, reflecting limited buying interest. The pair will likely accelerate its slump on a break below 1.1700, eyeing then 1.1663, the 2021 low.
Support levels: 1.1700 1.1660 1.1620
Resistance levels: 1.1755 1.1780 1.1820
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.