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

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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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