EUR/USD Price Forecast: Upbeat US data boosts US Dollar
EUR/USD Current price: 1.1690
- The United States confirmed annualized growth at 3.8% in the second quarter of the year.
- US Durable Goods Orders unexpectedly rose by 2.9% in August, beating expectations.
- EUR/USD accelerates its slide after losing 1.1700, lower lows ahead.
The EUR/USD pair consolidated losses throughout the first half of Thursday, not far above the Monday low at 1.1726. The US Dollar (USD) relief recovery paused ahead of the release of United States (US) data early in the American session, resuming afterwards and sending the pair to fresh weekly lows.
The country reported that the economy grew at an annualized pace of 3.8% in the three months to June, according to the final estimate of the Q2 Gross Domestic Product (GDP). The result was much better than the 3.3% previously calculated. Additionally, Durable Goods Orders were up 2.9% in August, much better than the previous -2.6% slide of the anticipated -0.5%. Finally, Initial Jobless Claims for the week ended September 27 were up by 218K, beating the expected 235K and easing from the 232K posted in the previous week.
Better-than-anticipated figures provided the USD with renewed impetus, resulting in EUR/USD now accelerating lower below the 1.1700 mark. The American session will feature multiple Federal Reserve (Fed) speakers, expected to bring more volatility to the FX board.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart for the EUR/USD pair shows that it’s down for a second consecutive day, and aiming further lower. The pair is trading below a now directionless 20 Simple Moving Average (SMA), which provides intraday resistance at around the daily high in the 1.1740 area. Also, technical indicators maintain their sharp downward slopes and are currently piercing their midlines, in line with mounting selling interest.
The near-term picture is clearly bearish. In the 4-hour chart, EUR/USD has fallen below all its moving averages, piercing a mildly bullish 200 SMA for the first time since September 4. Finally, technical indicators offer sharp downward slopes while entering oversold territory, supporting another leg south.
Support levels: 1.1650 1.1615 1.1590
Resistance levels: 1.1700 1.1740 1.1785
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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.
