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EUR/USD Could Recover If It Clears 1.1750

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Aayush Jindal

Key Highlights

  • EUR/USD extended its decline before it found support near 1.1665.
  • A major bearish trend line is forming with resistance near 1.1725 on the 4-hours chart.
  • GBP/USD broke the 1.3720 support and tested the 1.3600 zone.
  • USD/JPY is approaching a major breakout with resistance near 110.00.

EUR/USD Technical Analysis

The Euro remained in a bearish zone below 1.1800 against the US Dollar. EUR/USD extended its decline below 1.1720 and tested the 1.1665 zone.

Looking at the 4-hours chart, the pair traded as low as 1.1663. It is now attempting an upside correction above the 1.1680 level. It climbed above the 23.6% Fib retracement level of the downward move from the 1.1804 high to 1.1663 low.

It is now approaching the 1.1720 resistance, and it is well below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

There is also a major bearish trend line forming with resistance near 1.1725 on the same chart. The next resistance sits near 1.1735 or the 50% Fib retracement level of the downward move from the 1.1804 high to 1.1663 low.

The main resistance is near the 1.1750 zone. A successful break and close above the 1.1750 zone could set the pace for a larger increase in the coming sessions.

On the downside, the pair is likely to remain stable above 1.1665. A downside break below 1.1665 could start another decline. The next major support is near the 1.1600 level.

Economic Releases

  • Germany’s Manufacturing PMI for August 2021 (Preliminary) - Forecast 65.0, versus 65.9 previous.
  • Germany’s Services PMI for August 2021 (Preliminary) - Forecast 61.0, versus 61.8 previous.
  • Euro Zone Manufacturing PMI for August 2021 (Preliminary) – Forecast 62.0, versus 62.8 previous.
  • Euro Zone Services PMI for August 2021 (Preliminary) – Forecast 59.8, versus 59.8 previous.
  • UK Manufacturing PMI for August 2021 (Preliminary) – Forecast 59.5, versus 60.4 previous.
  • UK Zone Services PMI for August 2021 (Preliminary) – Forecast 59.0, versus 59.6 previous.
  • US Manufacturing PMI for August 2021 (Preliminary) – Forecast 63.0, versus 63.4 previous.
  • US Zone Services PMI for August 2021 (Preliminary) – Forecast 59.9, versus 59 .9 previous.
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