Sideways Trading Range
The EUR/USD was closed at $1.1867 after placing a high of $1.1897 and a low of $1.1858. EUR/USD continued its bearish momentum for the 2nd straight session on Monday despite the declining prices of the U.S. dollar throughout the day. The EUR/USD currency pair remained higher during early trading hours on Monday as the U.S. dollar was suffering amid the reduced number of investors entering the market ahead of the critical jobs data from the U.S. that is expected to release later this week.
This cautious behaviour of investors kept them away from the market for a while and gave strength to the single currency against the greenback that pushed EUR/USD higher. However, during late trading hours on Monday, some hawkish comments from a governor of the U.S. Federal Reserve added some strength back to the U.S. dollar that dragged the riskier currency pair EUR.USD on the downside. The currency pair EUR/USD lost about its gains and turned red for the day with minor losses.
On the data front, at 11:00 GMT, The German Retail Sales for June surged to 4.2% against the forecasted 1.9% and supported the single currency Euro that pushed EUR/USD higher in early trading hours. At 12:15 GMT, the Spanish Manufacturing PMI for July dropped to 59.0 against the forecasted 59.4 and weighed on Euro that added a loss in EUR/USD.
AT 12:45 GMT, the Italian Manufacturing PMI also declined to 60.3 against the anticipated 61.4 and weighed on the Euro and kept EUR/USD under pressure. At 12:50 GMT, the French Final Manufacturing PMI remained flat with the expectations of 58.1. At 12:55 GMT, the German Final Manufacturing PMI for July also remained unchanged as expected 65.9. At 13:00 GMT, the Final Manufacturing PMI from the whole bloc came in as forecasted 62.8.
EUR/USD Intraday Technical Levels
Pivot Point: 1.1874
EUR/USD - Technical Outlook
The EUR/USD is trading sideways between a narrow trading range of 1.1900 – 1.1845 level. On the upper side, the resistance stays at the 1.1900 level. On the 4-hourly chart, the EUR/USD pair has already violated the downward trendline that’s now extending support at the 1.1850 level. A bearish breakout of this support level can expose the EUR/USD pair towards 1.1810 support. That’s where the 50 M.A. (moving average) stays and can trigger a bounce off in the EUR/USD. However, the bearish crossover below this level can expose the EUR/USD pair towards the 1.1760 support level. The bullish bias dominates the EUR/USD above 1.1850 today. All the best.
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