EUR/USD Forecast: Pressure mounts, poised to challenge 1.1800

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1843

German data was unexpectedly disappointing, with the Economic Sentiment contracting in July.
US ISM Services PMI is foreseen at 63.5 in June, down from the previous 64.
EUR/USD is poised to extend its decline sub-1.1800 in the near-term.

The EUR/USD pair peaked at 1.1894 but changed course amid renewed dollar’s demand and dismal European data weighing on the market’s mood. The pair hovers around 1.1840 heading into the US opening, as Wall Street aims to open lower, weighed by the sour tone of European indexes.

Germany published May Factory Orders, which rose by 54.3% YoY and fell 3.7% MoM. The ZEW survey showed that the Economic Sentiment contracted to 63.3 in July, much worse than anticipated. The sentiment in the EU was also down, to 61.2. On a positive note, May Retail Sales in the EU rose 4.6% MoM and 9% YoY, beating expectations. The US session will bring the final June Markit Services PMI and the official ISM index, this last, foreseen at 63.5, down from the previous 64.

EUR/USD short-term technical outlook

The EUR/USD pair offers a neutral-to-bearish stance. The 4-hour chart shows that the pair is comfortable below a directionless 20 SMA, while the longer ones extend their declines above it. Technical indicators are flat, the Momentum around its midline and the RSI within negative levels, anticipating another leg lower on a break below 1.1800.

Support levels: 1.1795 1.1750 1.1710

Resistance levels: 1.1885 1.1920 1.1960

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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