EUR/USD Forecast: Bears maintain the pressure, lower lows at sight

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1811

Concerns about global growth weigh on investors’ mood after soft Chinese GDP.
US data came in mixed, fell short of impressing speculative interest.
EUR/USD maintains its bearish stance in the near-term, could challenge 1.1771 low.

The EUR/USD pair retreated from an intraday high of 1.1850 ahead of US data release, as the dollar managed to attracted buyers in a risk-averse environment. The sour tone of European equities and dipping US Treasury yields are reflecting the dismal mood. Poor Chinese growth data released at the beginning of the day and the dovish comments from US Federal Reserve Chair Jerome Powell from Wednesday are behind the ongoing negative sentiment.

US data was mixed. The country published the July NY Empire State Manufacturing Index, which improved to 43 from 17.4, although the Philadelphia Fed Manufacturing Survey contracted from 30.7 to 21.9 in the same period. In addition, Initial Jobless Claims for the week ended July 9 resulted in 360K as expected. The macroeconomic calendar includes June Industrial Production and Capacity Utilization, which will be out after Wall Street’s opening.

EUR/USD short-term technical outlook

The EUR/USD pair held near its daily lows around 1.1810 after US data, maintaining its negative tone in the near-term. The 4-hour chart shows that it´s back below a bearish 20 SMA after a failed attempt to run above it. Technical indicators retreated sharply from around their midlines, indicating increased selling interest. The pair needs to break below the weekly low at 1.1771 to confirm another leg south.

Support levels: 1.1770 1.1720 1.1685

Resistance levels: 1.1840 1.1885 1.1920

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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