EUR/USD Forecast: Weakness to persists ahead of Fed
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UNLOCK OFFEREUR/USD Current Price: 1.1770
- Markit preliminary July PMIs indicated steady economic growth in the EU and the US.
- Global stocks’ indexes closed in the green, reflecting a better market’s mood.
- EUR/USD consolidates near multi-month lows, could extend its decline.
The EUR/USD pair closed in the red for a second consecutive week, settling at 1.1770. The pair consolidated on Friday inside quite a tight range, unable to attract buyers despite upbeat European data and a better market mood. Global indexes closed in the green, while government bond yields held steady near the upper end of their weekly range.
Markit published the preliminary estimates of the July PMIs. In the Union, most indexes beat the market’s expectations, with manufacturing and services output sharply up in Germany and the EU. On the other hand, the US Manufacturing PMI advanced to 63.1, while the Services index unexpectedly contracted to 59.8 from 64.6 in June. Economic expansion continues at the beginning of Q3.
On Monday, Germany will publish the July IFO Business Climate expected to have improved to 102.1 from 101.8. The US will publish June New Home Sales and the Dallas Fed Manufacturing Business Index for the same month. Nevertheless, trading could remain choppy ahead of the U Federal Reserve monetary policy decision on Monday.
EUR/USD short-term technical outlook
The EUR/USD pair trades near a multi-month low of 1.1751, having met buyers in the 1.1750 through the week. The daily chart shows that the pair continues developing inside a descendant channel, with a bearish 20 SMA converging with the upper end of the figure. The 100 SMA has crossed below the 200 SMA, both above the shorter one, a sign that bears are in control. Finally, technical indicators lack directional strength but hold within negative levels. In the near-term, and according to the 4-hour chart, the pair is neutral-to-bearish, trading just below a mildly bearish 20 SMA and with technical indicators consolidating around or below their midlines.
Support levels: 1.1750 1.1705 1.1670
Resistance levels: 1.1800 1.1840 1.1885
EUR/USD Current Price: 1.1770
- Markit preliminary July PMIs indicated steady economic growth in the EU and the US.
- Global stocks’ indexes closed in the green, reflecting a better market’s mood.
- EUR/USD consolidates near multi-month lows, could extend its decline.
The EUR/USD pair closed in the red for a second consecutive week, settling at 1.1770. The pair consolidated on Friday inside quite a tight range, unable to attract buyers despite upbeat European data and a better market mood. Global indexes closed in the green, while government bond yields held steady near the upper end of their weekly range.
Markit published the preliminary estimates of the July PMIs. In the Union, most indexes beat the market’s expectations, with manufacturing and services output sharply up in Germany and the EU. On the other hand, the US Manufacturing PMI advanced to 63.1, while the Services index unexpectedly contracted to 59.8 from 64.6 in June. Economic expansion continues at the beginning of Q3.
On Monday, Germany will publish the July IFO Business Climate expected to have improved to 102.1 from 101.8. The US will publish June New Home Sales and the Dallas Fed Manufacturing Business Index for the same month. Nevertheless, trading could remain choppy ahead of the U Federal Reserve monetary policy decision on Monday.
EUR/USD short-term technical outlook
The EUR/USD pair trades near a multi-month low of 1.1751, having met buyers in the 1.1750 through the week. The daily chart shows that the pair continues developing inside a descendant channel, with a bearish 20 SMA converging with the upper end of the figure. The 100 SMA has crossed below the 200 SMA, both above the shorter one, a sign that bears are in control. Finally, technical indicators lack directional strength but hold within negative levels. In the near-term, and according to the 4-hour chart, the pair is neutral-to-bearish, trading just below a mildly bearish 20 SMA and with technical indicators consolidating around or below their midlines.
Support levels: 1.1750 1.1705 1.1670
Resistance levels: 1.1800 1.1840 1.1885
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