EUR/USD Forecast: Fears continue to smash the dollar
EUR/USD Current Price: 1.1747
- US June Durable Goods Orders came in mixed but fell short of triggering a reaction.
- Concerns about US-China tensions and the ongoing pandemic weigh on the greenback.
- EUR/USD is overbought but with no technical signs of upward exhaustion.
The dollar’s unstoppable decline extended throughout the first half of this Monday, resulting in EUR/USD hitting 1.1764 during European trading hours. Concerns about the US-China relationship and the pandemic spread in the US are taking their toll on the greenback. German’s IFO Business Climate report resulted above expected, printing at 90.5 in July, although the assessment of the current situation was slightly worse than anticipated. Expectations, however, jumped to 97.0 from 91.4.
The US published June Durable Goods Orders, which were mixed. The headline number was slightly better than anticipated, as it resulted in 7.3%, although Durable Goods ex-defence rose by less than expected, as well as orders without ex-transportation.
EUR/USD short-term technical outlook
The EUR/USD pair is trading in the 1.1740 price zone, barely easing from the mentioned multi-month high. Technical indicators in the 4-hour chart indicate that the pair is overbought, but besides being in extreme readings, there are no signs of upward exhaustion or an upcoming U-turn. Moving averages, in the meantime, continue to head firmly north well below the current levels.
Support levels: 1.1710 1.1670 1.1625
Resistance levels: 1.1765 1.1800 1.1845
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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.
