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EUR/USD Forecast: Bearish Momentum Could Accelerate On A Break Below 1.1740

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EUR/USD Forecast: Bearish Momentum Could Accelerate On A Break Below 1.1740

EUR/USD Current Price: 1.1740

  • The dollar strengthened after US President Trump signed executive orders on fiscal relief.
  • Upbeat US data fell short of supporting the EU, the focus shifts to the ZEW Survey.
  • EUR/USD bearish momentum could accelerate on a break below 1.1740.

The greenback advanced against all of its major rivals, sending EUR/USD down to 1.1740 ahead of the US opening. The pair tried to recover from the mentioned low, but an intraday bounce was rejected by sellers aligned ahead of 1.1800, resulting in EUR/USD ending the day in the red near the mentioned low. The dollar’s advance is an extension of Friday’s gains, fueled by the latest US President Trump’s executive orders on fiscal ail. Speculative interest chose to ignore mounting tensions between the US and China, as Beijing announced sanctions on 11 Americans, most of them are Congressmen and none part of Trump’s administration and threatened with retaliation over the forced selling of the TikTok app.

The macroeconomic calendar had little to offer this Monday.  The EU published the August Sentix Investor Confidence, which resulted at -13.4, beating the expected -15.2 and improving from the previous -18.2, while the US unveiled the June JOLTS Job Openings, which beat expectations, rising by 5.889M. This Tuesday, the focus will be on the August German ZEW Survey on Economic Sentiment, seen improving in Germany and the EU when compared to the previous month. The US will publish August PPI data.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair is trading around 1.1740 as the US session comes to an end, retaining its bearish short-term stance, despite holding near the 23.6% retracement of its July/August advance. The 4-hour chart shows that the 20 SMA turned lower above the current level, while the larger ones keep heading north below the current price. Technical indicators, in the meantime, have resumed their declines within negative levels, after a modest corrective advance, maintaining the risk skewed to the downside.

Support levels: 1.1740 1.1690 1.1650

Resistance levels:  1.1800 1.1845 1.1890

 

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