Pivot Point Support at 1.1870
After hitting a high of $1.1888 and a low of $1.1855, the EUR/USD pair was closed at $1.1868. After climbing for the previous six days in a row, the EUR/USD currency pair reversed course on Monday. After the US dollar gained minimal strength on Monday, the EUR/USD currency pair came under pressure and ended the day in the negative.
After an uptick in greenback demand, the currency pair EUR/USD remained on the defensive mode on Monday. The Euro was under pressure ahead of Thursday's meeting of the European Central Bank. Moreover, the German Factory Orders report disappointed euro traders and provided little support, keeping the EUR/USD currency pair under pressure throughout the day.
There was no report from the United States on the data front, so the currency pair was left with the European data issued on Monday. At 11:00 GMT, German Factory Orders for July increased by 3.4 percent, above expectations of -0.9 percent, bolstering the single currency Euro and limiting the drop in the EUR/USD currency pair. At 13:30 GMT, the Sentix Investor Confidence Index for September rose to 19.6 from 18.3, bolstering the single currency Euro and preventing additional losses in EUR/USD. The data from Europe revealed that the rebound in Europe's economic powerhouse's manufacturing sector was gaining traction.
Even though there are high expectations for the ECB to reduce PEPP at its forthcoming meeting, the Euro currency was under pressure on Monday due to weak trading circumstances and investors' cautious behavior ahead of the meeting. The European Central Bank will deliver its interest rate decision and monetary policy statement on Thursday.
Furthermore, Eurostat will issue GDP growth estimates for the second quarter of 2021 on Tuesday. The expectation is that the economy will drop by 0.6 percent every quarter, and any statistic indicating a greater contraction will weaken the Euro, while any figure indicating a smaller contraction will help it.
On Tuesday, the ZEW Economic Sentiment Survey from Germany will also be revealed. This release will also be watched closely by investors for additional motivation.
EUR/USD Intraday Technical Levels
Pivot Point: 1.1870
EUR/USD - Technical Outlook
The EUR/USD is trading choppy, tossing above and below a pivot point level of 1.1870 level. On the hourly timeframe, the pivot point supports the EUR/USD price at the 1.1870 level. A breakout of this support level exposes the pair to the next level of 1.1840 and 1.1815.
Alternatively, the chances of a bullish bounce-off remain high above the 1.1870 support level. A bounce-off in EUR/USD exposes its price towards 1.1885 and 1.1902 resistance levels. Further on the higher side, the breakout of 1.1902 exposes the pair towards the 1.1927 and 1.1935 regions. The RSI is heading lower, entering the sell zone.
It means the sellers may soon get dominance. However, it’s essential for them first to violate pivot point support. The EUR/USD bullish bias dominates over 1.1870 and vice versa. All the best.
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