EUR/USD Forecast: Heading towards 1.1700

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1740

Tepid European macroeconomic data hurt the shared currency.
US June JOLTS Job Openings report jumped to 10.73 million, beating expectations.
EUR/USD is poised to extend its decline in the near-term, poised to test March low.

The EUR/USD pair fell to a fresh 4-month low of 1.1737, trading nearby ahead of the Asian opening. The dollar corrected lower at the beginning of the day, resuming its advance during US trading hours, as US government bond yields surpassed Friday’s highs. The yield on the 10-year US Treasury note peaked at 1.32% after another US employment-related report, as the June JOLTS Job Openings report jumped to 10.73 million, much better than anticipated and in line with the bounce in Nonfarm Payrolls.

Macroeconomic data coming from the Union helped to limit advances, as EU Sentix Investor Confidence contracted by more than anticipated in August, to 22.2 from 29.8. Germany released its June Trade Balance, which posted a surplus of €13.6 billion, beating the market’s expectations. On Tuesday, the focus will be on the August German ZEW Survey on Economic Sentiment, foreseen contracting to 57 in the country and recovering to 52 in the Union. The US will present the July NFIB Business Optimism Index and Nonfarm Productivity for the second quarter of the year.

EUR/USD short-term technical outlook

Trading around its Monday’s low, the EUR/USD pair is bearish in the near-term, and poised to at least test March monthly low at 1.1703. In the 4-hour chart, technical indicators hover within oversold readings, although still above the lows posted last week. Meanwhile, the 20 SMA heads firmly lower after crossing below the longer ones, reflecting increased selling interest. Thus, the pair has room to approach the 1.1600 area once below the mentioned March low.

Support levels: 1.1705 1.1660 1.1620.

Resistance levels: 1.1790 1.1830 1.1880

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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