EUR/USD Forecast: Bears eyeing a test of 1.1690

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1759

EU August Sentix Investor Confidence improved to -13.4 from -18.2.
US fiscal stimulus once again taking centre stage after President Trump’s executive orders.
EUR/USD to accelerate its decline on a break below a Fibonacci support level at 1.1742.

The EUR/USD pair is down this Monday, nearing the 23.6% retracement of its July/August rally at 1.1742. The American currency strengthens on relief news related to the latest fiscal stimulus measures taken by US President Trump, who announced four executive orders during the weekend, bypassing Congress.

The macroeconomic calendar is light at the beginning of the week, with data relevance to gain momentum as days go back. So far, the EU published the August Sentix Investor Confidence, which resulted at -13.4, beating the expected -15.2 and improving from the previous -18.2. As for the US, it will unveil the June JOLTS Job Openings, foreseen at 4.91M from 5.39M in the previous month.

EUR/USD short-term technical outlook

The first attempt to break below the mentioned Fibonacci support level has been unsuccessful, as the pair bounced some 20 pips from its daily low at 1.1740. Nevertheless, and in the short-term, the risk is skewed to the downside. In the 4-hour chart, the pair extends its decline below a now flat 20 SMA, while a bullish 100 SMA provides dynamic support at around 1.1690. Technical indicators, in the meantime, head firmly south within negative levels.

Support levels: 1.1740 1.1690 1.1650

Resistance levels: 1.1800 1.1845 1.1890

View Live Chart for the EUR/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.