EUR/USD Forecast: Consolidating losses and at risk of falling

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1768

The market’s sentiment improved, but the greenback retains its strength.
US Treasury yields keep recovering ground, bouncing from multi-month lows.
EUR/USD bearish case remains firmly in place, eyes sub-1.1700 levels.

The EUR/USD pair consolidates around 1.1770, as a better market’s mood is barely enough to prevent the greenback from appreciating further against its high-yielding rivals. During London trading hours, the pair fell to 1.1751, a fresh three-month low, a sign that bears retain control.

Wall Street’s recovery is set to continue, as futures advance, following the lead of their European counterparts. In the meantime, government bond yields have recovered, with the yield on the 10-year US Treasury note currently at 1.24%.

The macroeconomic calendar had nothing relevant to offer. The EU did not publish macroeconomic figures, while the US will release MBA Mortgage Applications for the week ended July 16, previously at 16%.

EUR/USD short-term technical outlook

The EUR/USD pair remains bearish. In the 4-hour chart, it keeps developing below bearish moving averages and within a descendant channel. Technical indicators lack directional momentum but hold below their midlines, with the RSI currently near oversold readings. The immediate support level is 1.1750, but the bearish potential will increase if the pair extends its slide below 1.1720.

Support levels: 1.1760 1.1720 1.1685

Resistance levels: 1.1800 1.1840 1.1885

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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