Recalling FX Leaders US Session Brief Aug 22, the EUR/USD currency pair is trading exactly in line with our forecast. The major pair traded in a narrow range of 1.1110 – 1.1065 for more than a week. Finally, the long waited movement is happening in the pair.

The single currency euro is getting weaker against the US dollar despite having strong fundamentals. On Thursday, the Eurozone’s Purchasing Managers’ Indexes (PMI) for August beat expectations on all data points – including the critical German Manufacturing PMI. Furthermore, the French industry also reported growth, and services sectors across the continent seem to be doing fine, according to Markit’s forward-looking surveys.

Despite this, EUR/USD is violating 1.1065 support level on the lower side. Technically, the pair may experience a deep drop until 1.1025. While the 50 and 100 periods EMA are also in the favor of a bearish trend.

Secondly, the RSI is crossing below 50, suggesting bearish bias among traders.

EUR/USD – Technical Levels

Support Resistance

1491.87 1504.06

1486.11 1510.49

1473.92 1522.68

Key Trading Level: 1498.3

Considering all these things, we have opened a forex trading signal to sell the EUR/USD below 1.1065 with a stop loss above 1.1080 and take profit of around 1.1030.