EUR/USD Forecast: Upbeat US data spurs optimism

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1706

US Durable Goods Orders were up 1.8% MoM in August, beating expectations.
Investors finished digesting central banks’ announcements, await a new catalyst.
EUR/USD trades at the lower end of its monthly range, the risk is skewed to the downside.

The American dollar started the week with a firmer tone, although a scarce macroeconomic calendar keeps major pairs within familiar levels. The EUR/USD pair hovers around the 1.1700 level as market participants search for a new catalyst after central banks decisions and cooling concerns related to the Chinese giant Evergrande.

On the data front, the EU published minor figures. August Money Supply increased 7.9% YoY, better than anticipated, while Private Loans in the same period remained steady at 4.2% YoY, missing the market’s expectations. The US published August Durable Goods Orders, which rose 1.8% MoM, much better than anticipated. The upbeat report skews the scale towards risk appetite, although fireworks are still missing.

EUR/USD short-term technical outlook

The EUR/USD pair trades at the lower end of its September range, not far from this year low at 1.1663. The near term picture is neutral-to-bearish, as the pair meets intraday selling interest around a mildly bearish 20 SMA at around 1.1720. At the same time, the Momentum indicator turned flat around its 100 line, while the RSI indicator seesaws within negative levels, indicating little buying interest. Bulls need to push the pair beyond 1.1755, something quite unlikely at this point.

Support levels: 1.1660 1.1620 1.1670

Resistance levels: 1.1720 1.1755 1.1780

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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