EUR/USD Forecast: Consolidating just below 1.1900

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1882

Markit upwardly revised its Manufacturing PMIs for the EU and Germany.
US ISM Manufacturing PMI is expected to have improved to 60.9 in July.
EUR/USD is neutral-to-bullish, still needs to break above 1.1920.

The EUR/USD pair trades higher in range this Monday, still developing below the 1.1900 level. The shared currency advanced on the back of upbeat local data, as Markit upwardly revised its July Manufacturing PMIs for Germany and the EU to 65.9 and 62.8, respectively. The greenback trades with a weak tone across the FX board as stocks stand in the green. Meanwhile, US Treasury yields hold steady, hovering around Friday’s closing levels.

Markit will publish the final reading of the US July Manufacturing PMI, previously estimated at 63.1. In addition, the country will release the official ISM Manufacturing PMI for the same month, foreseen at 60.9 from 60.6 in June.

EUR/USD short-term technical outlook

The EUR/USD pair traded as high as 1.1896 and currently hovers around 1.1880. The near-term picture is neutral-to-bullish, as long as the pair holds above the 1.1840 level, the immediate support. The 4-hour chart shows that it is holding above all of its moving averages, with the 20 SMA heading firmly higher above the longer ones. However, technical indicators lack directional strength, although they stand within positive levels. The bullish case will be firmer if the pair breaks above 1.1920, the 61.8% retracement of its March/May rally.

Support levels: 1.1840 1.1790 1.1750

Resistance levels: 1.1920 1.1960 1.2000

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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