EUR/USD Forecast: Bearish pressure mounts

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1778

US Durable Goods Orders beat expectations at 11.2% in July.
Dollar stronger, although investors maintain a cautious approach.
EUR/USD at risk of accelerating its decline on a break below 1.1750.

The EUR/USD pair eased sub-1.1800 ahead of US opening, as somehow the optimism seen at the beginning of the week faded. Major pairs spent the first half of the day consolidating in tight ranges, with the greenback grabbing some strength ahead of the release of US Durable Goods Orders. According to the official report, orders were up 11.2% in July, much better than the 4.3% expected. Non-defence Capital Goods Orders ex-Aircraft met expectations at 1.9%. The greenback accelerated its advance afterwards trading now near a daily low at 1.1771.

The EU didn’t release relevant macroeconomic data this Wednesday, while equities fail to provide clues, hovering around their opening levels.

EUR/USD short-term technical outlook

The EUR/USD pair is nearing 1.1750, the low set last Friday and the immediate support. Readings in the 4-hour chart support a bearish extension ahead, as the upside was contained by the 20 and 100 SMA, while technical indicators head south below their midlines. A steeper decline, however, is still unclear given the market’s cautious approach to the dollar.

Support levels: 1.1750 1.1710 1.1665

Resistance levels: 1.1800 1.1840 1.1885

View Live Chart for the EUR/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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