EUR/USD Forecast: risking a new leg lower
|The EUR/USD pair trades lower in range, retreating from a high of 1.1769 reached late Wednesday, as high yielding assets came back under pressure with the Asian opening, with equities in the region and Europe in the red. The decline is moderate as the pair is currently around 1.1725, yet with the pair below Friday's post-NFP low, and having extended its weekly decline down to 1.1688, the downward risk remains strong, at least short term.
There were no major macroeconomic releases in Europe, but the US will offer later today is PPI data for July, alongside with weekly unemployment claims. The star of the week, however, remains to be US July inflation, scheduled for this Friday. In the meantime, sentiment will have a saying on the pair's direction, as it did yesterday.
From a technical point of view, the 4 hours chart shows that a bearish 20 SMA keeps containing advances, now around the mentioned daily high, whilst technical indicators extended their declines within negative territory, supporting additional declines ahead. In the same chart, however, the pair is struggling around a still bullish 100 SMA. Nevertheless, a downward acceleration through 1.1690 should lead to a test of 1.1650, while below this last, the 1.1610/20 area is the next probable target.
Above the daily high, the pair can recover up to 1.1820, but it would take a break above this last to revert the ongoing negative tone, quite unlikely for today.
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.