Prelim GDP & Jackson Hole Symposium in Focus
After hitting a high of $1.1775 and a low of $1.1725, the EUR/USD ended the day at $1.1770. The EUR/USD currency pair remained bullish for the fourth consecutive session on Wednesday, despite the US dollar's decline in value.
On Wednesday, the US Dollar Index, which measures the dollar's value against a basket of six major currencies, fell for the third straight session, reaching 92.82, pushing the EUR/USD pair higher the day. The single currency Euro, on the other hand, has been under pressure for the day as a result of weaker-than-expected macroeconomic statistics. However, the currency pair managed to stay in the green during the day as traders concentrated on the US dollar's weakening rather than the Euro's. However, the currency pair managed to stay in the green during the day as traders concentrated on the US dollar's weakening rather than the Euro's.
On the statistics front, August's German Ifo Business Climate fell to 99.4 from 100.2 expected at 13:00 GMT, weighing on the single currency Euro and capping further advances in EUR/USD. For August, the Belgian NBB Business Climate fell to 7.6 from 9.1 expected at 17:56 GMT, weighing on Euro and limiting the rise in the EUR/USD currency pair.
For August, the Belgian NBB Business Climate fell to 7.6 from 9.1 expected at 17:56 GMT, weighing on Euro and limiting the rise in the EUR/USD currency pair.
On the US side, the Core Durable Goods Orders for July jumped to 0.7 percent against expectations of 0.5 percent at 17:30 GMT, bolstering the US dollar and capping further gains in the EUR/USD pair. In July, the Durable Goods Orders also rose to -0.1% from -0.3% expected, supporting the US dollar and keeping the EUR/USD pair's gains limited for the day.
In July, the Durable Goods Orders also rose to -0.1% from -0.3% expected, supporting the US dollar and keeping the EUR/USD pair's gains limited for the day.
On Wednesday, the US dollar was under pressure as fears over global economic recovery were alleviated a little when the US FDA officially authorized the Pfizer and BioNTech vaccine, which might speed up inoculations in the US. Furthermore, the Moderna vaccine is projected to get complete FDA approval in the coming weeks, increasing the number of persons who have been vaccinated in less time.
The market's attitude was lifted further by hopeful remarks from Dr. Anthony Fauci, the United States' top health expert, who predicted that the coronavirus would be under control by beginning next year. These good developments in the vaccination and coronavirus ecosystem boosted risk-on attitude, allowing the risky pair EUR/USD to finish the day in the green.
EUR/USD Intraday Technical Levels
Support Resistance
1.1730 1.1770
1.1709 1.1787
1.1691 1.1809
Pivot Point: 1.1784
EUR/USD - Technical Outlook
The EUR/USD is trading at 1.1774 with a slight bullish bias. In the 4-hour timeframe, the EUR/USD has violated the ascending triangle pattern that was extending resistance at the 1.1757 level. But now, this level has been violated, and it's going to extend support at the 1.1757 level. The continuation of a bullish trend exposes the EUR/USD pair towards 1.1774 and 1.1789 resistance levels. Whereas, the further upward movement will be prone to 1.1837 resistance levels.
The pair may find support around the 1.1757 level and a bearish break below 1.1757 exposes the pair towards the 1.1725 level. Investors' primary focus will stay on the Prelim GDP & Jackson Hole Symposium in Focus as this could drive price action during today's New York session. All the best!
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