EUR/USD Forecast: Bulls not ready to give up

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1866

A holiday in the US and Canada will likely maintain majors ranging through the rest of the day.
European data was mixed as Germany Factory Orders improved, but EU confidence plunged.
EUR/USD will retain its bullish potential as long as it holds above 1.1820.

The greenback is recovering some ground on Monday after collapsing at the end of the week on the back of a poor US Nonfarm Payrolls report. The EUR/USD pair keeps retreating after topping at 1.1908, currently trading in the 1.1840 price zone. Overall, financial markets are quiet, with a holiday in the US and Canada likely to limit volatility through the rest of the day.

Data coming from the Union was mixed, as German Factory Orders increased 3.4% MoM and 24.4% YoY in July, much better than anticipated. On the other hand, EU September Sentix Investor Confidence contracted by more than anticipated, down to 19.6 from 22.2 in August. The US won’t publish macroeconomic data amid the Labor Day holiday.

EUR/USD short-term technical outlook

The EUR/USD pair retains its bullish stance despite its latest pullback. The 4-hour chart shows that the pair has met near-term buyers around a bullish 20 SMA, which keeps advancing above the longer ones. Technical indicators have corrected overbought conditions but pared their declines within positive levels, with the Momentum bouncing and the RSI consolidating around 58. The pair could turn bearish on a break below 1.1820, a Fibonacci support level.

Support levels: 1.1850 1.1820 1.1785

Resistance levels: 1.1910 1.1950 1.1990

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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