EUR/USD Forecast: Under pressure and set to extend its slump
EUR/USD Current Price: 1.1835
- US Senate is in talks to finish the infrastructure bill this weekend.
- The Nonfarm Payroll report is expected to show the US added 850K new jobs in July.
- EUR/USD is at risk of falling further and test July’s low at 1.1751.
The EUR/USD pair extended its weekly decline to 1.1827, a fresh weekly low, now hovering around 1.1835, unchanged on a daily basis. The FX board saw little action on Thursday, with most major pairs confined to familiar ranges despite a wide range of news. The market mood picked up during the American afternoon, following news that the US Senate is in talks to finish the infrastructure bill and kick-start discussing the $ 3.5 trillion budget afterwards. Senate Republican Leader McConnell said that Democrats should raise the debt ceiling on their own.
Data-wise, Germany published June Factory Orders, which painted a mixed picture as they were up in the month 4.1%, also up 26.2% YoY, the latter below the previous 54.9% and the expected 67.5%. Meanwhile, the US published Initial Jobless Claims for the week ended July 30, which came in at 385K, better than the previous 399K, and slightly above the 384K expected. The country also published the June Trade Balance, posting a deficit of $93.2 billion.
On Friday, the focus will be on the US employment report. The country is expected to have added 870K new jobs in July, slightly above the previous 850K. The Unemployment rate is expected to have retreated to 5.7% from 5.9%, while the Labor Force Participation Rate is seen steady at 61.6%.
EUR/USD short-term technical outlook
The EUR/USD pair is at risk of falling further, according to intraday technical readings. The 4-hour chart shows that technical indicators remain directionless within negative levels. At the same time, the pair is trading between directionless 100 and 200 SMAs, while below a bearish 20 SMA. The pair has an immediate support level at 1.1805, with a break below favoring a decline toward 11751 July’s monthly low.
Support levels: 1.1805 1.1750 1.1705
Resistance levels: 1.1880 1.1920 1.1960
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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.
