EUR/USD Forecast: En route to test the year low
Premium|Take advantage of 50% OFF on your first month.
50% OFF and access to ALL our articles and insights.
You have reached your limit of 5 free articles for this month.
Take advantage of the Special Price just for today!
50% OFF and access to ALL our articles and insights.
Subscribe to PremiumEUR/USD Current price: 1.1712
- News coming from China exacerbate concerns about the global economic comeback.
- The German Producer Price Index jumped to 12% YoY in August.
- EUR/USD bounced modestly from around 1.1700, remains at risk of falling.
The EUR/USD pair battles around the 1.1700 level as the greenback firms up in a risk-averse environment. The dismal mood comes from China, more precisely, from the Evergrande Group, which is China's 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.
At the same time, market participants turned cautious ahead of the US Federal Reserve’s monetary policy decision next Wednesday. Global stocks are sharply down, with US indexes poised to open dip in the red. Government bond yields are stable, with US Treasury yields ticking marginally lower.
Data-wise, 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. The US will release the NAHB Housing Market Index, foreseen at 75 in September.
EUR/USD short-term technical outlook
The EUR/USD pair trades near this year low of 1.1663, oversold in the near term. The risk, however, remains skewed to the downside. In the 4-hour chart, the pair is developing below all of its moving averages, with the 20 SMA heading firmly lower below the longer ones. Technical indicators remain near daily lows, with the Momentum bouncing just modestly. Chances of a corrective advance are limited, while renewed selling pressure below 1.1700 should lead to a retest of the mentioned 2021 low.
Support levels: 1.1700 1.1660 1.1620
Resistance levels: 1.1755 1.1780 1.1820
EUR/USD Current price: 1.1712
- News coming from China exacerbate concerns about the global economic comeback.
- The German Producer Price Index jumped to 12% YoY in August.
- EUR/USD bounced modestly from around 1.1700, remains at risk of falling.
The EUR/USD pair battles around the 1.1700 level as the greenback firms up in a risk-averse environment. The dismal mood comes from China, more precisely, from the Evergrande Group, which is China's 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.
At the same time, market participants turned cautious ahead of the US Federal Reserve’s monetary policy decision next Wednesday. Global stocks are sharply down, with US indexes poised to open dip in the red. Government bond yields are stable, with US Treasury yields ticking marginally lower.
Data-wise, 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. The US will release the NAHB Housing Market Index, foreseen at 75 in September.
EUR/USD short-term technical outlook
The EUR/USD pair trades near this year low of 1.1663, oversold in the near term. The risk, however, remains skewed to the downside. In the 4-hour chart, the pair is developing below all of its moving averages, with the 20 SMA heading firmly lower below the longer ones. Technical indicators remain near daily lows, with the Momentum bouncing just modestly. Chances of a corrective advance are limited, while renewed selling pressure below 1.1700 should lead to a retest of the mentioned 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.