EUR/USD Forecast: Declines still seen as buying opportunities
Premium|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.
Your coupon code
FXS75
EUR/USD Current Price: 1.1760
- Concerns related to the next US aid package and the spread of coronavirus weigh on mood.
- A scarce macroeconomic calendar leaves major pairs in the hands of sentiment.
- EUR/USD at risk of falling in the short-term but the wider view still favours the upside.
The EUR/USD pair is trading unchanged in the 1.1760 price zone, after a failed attempt to resume its advance. The pair surged to 1.1806 with London opening, but it quickly turned back south, as investors struggle for direction. News that the US Congress is incapable of agreeing on the next coronavirus aid package weighed on investors’ mood, alongside comments from WHO Director Tedros, who said that there might never be a solution for stopping the spread of COVID-19.
The macroeconomic calendar has little to offer today, as the EU published the June Producer Price Index, which rose 0.7% in the month, and declined by 3.7% when compared to a year earlier, better than anticipated. As for the US, the country will publish the IBD/TIPP Economic Optimism Index for August, and June Factory Orders.
EUR/USD short-term technical outlook
The EUR/USD pair continues to trade above the 23.6% retracement of its July rally at around 1.1735, the immediate support. The 4-hour chart shows that a flat 20 SMA continues to cap advances, while technical indicators head south, the Momentum well into negative territory and the RSI around its midline. Nevertheless, the bearish potential is limited by the lack of dollar’s demand, with declines still seen as buying opportunities.
Support levels: 1.1735 1.1695 1.1650
Resistance levels: 1.1800 1.1845 1.1890
EUR/USD Current Price: 1.1760
- Concerns related to the next US aid package and the spread of coronavirus weigh on mood.
- A scarce macroeconomic calendar leaves major pairs in the hands of sentiment.
- EUR/USD at risk of falling in the short-term but the wider view still favours the upside.
The EUR/USD pair is trading unchanged in the 1.1760 price zone, after a failed attempt to resume its advance. The pair surged to 1.1806 with London opening, but it quickly turned back south, as investors struggle for direction. News that the US Congress is incapable of agreeing on the next coronavirus aid package weighed on investors’ mood, alongside comments from WHO Director Tedros, who said that there might never be a solution for stopping the spread of COVID-19.
The macroeconomic calendar has little to offer today, as the EU published the June Producer Price Index, which rose 0.7% in the month, and declined by 3.7% when compared to a year earlier, better than anticipated. As for the US, the country will publish the IBD/TIPP Economic Optimism Index for August, and June Factory Orders.
EUR/USD short-term technical outlook
The EUR/USD pair continues to trade above the 23.6% retracement of its July rally at around 1.1735, the immediate support. The 4-hour chart shows that a flat 20 SMA continues to cap advances, while technical indicators head south, the Momentum well into negative territory and the RSI around its midline. Nevertheless, the bearish potential is limited by the lack of dollar’s demand, with declines still seen as buying opportunities.
Support levels: 1.1735 1.1695 1.1650
Resistance levels: 1.1800 1.1845 1.1890
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.