EUR/USD Standstill Amid Triangle – Buckle up for a Breakout at $1.1850
Weakness in the Dollar Supports EUR/USD at $1.1850
Quick Update on Economic Releases
On the data front, at 12:00 GMT, the Spanish Unemployment Change for July came in at -197.8K against the predicted -115.5K, which supported the single currency Euro and limited the declining prices of the EUR/USD pair. At 14:00 GMT, the PPI from the whole bloc for June remained flat, in line with the expectations of 1.4%.
From the US side, at 19:00 GMT, the Factory Orders for June came in, showing an increase to 1.5%, against the estimated 1.0%, which supported the US dollar and added to the losses in the EUR/USD. At 19:01 GMT, the IBD/TIPP Economic Optimism for August came in, showing a decline to 53.6 against the predicted 55.3, which put pressure on the US dollar and limited the downward momentum of the EUR/USD. The Wards Total Vehicle Sales also dropped, coming in at 14.8M, against the expected 15.2M, weighing on the US dollar and limiting the downward momentum in the EUR/USD pair.
Meanwhile, according to the WHO, the number of coronavirus cases has passed a milestone of 60 million since the pandemic began, and the death toll recorded in the European region has reached 1.2 million. The rising number of coronavirus cases in the whole bloc, due to the spread of the Delta variant, has caused many European countries to re-impose restrictions, weighing heavily on the single currency Euro, thereby keeping the EUR/USD currency pair under pressure for the day.
EUR/USD – Daily Technical Levels – All Eyes on 1.1850
1.1844 1.1885
1.1828 1.1910
1.1803 1.1926
Pivot Point: 1.1869
EUR/USD – Technical Analysis – Can Euro Violate Triangle Pattern
The EUR/USD pair is trading with a neutral bias at the $1.1870 level. On the 2-hour timeframe, the EUR/USD pair is gaining support at the 1.1850 level. This support level is extended by an upward trendline or, more precisely, a symmetrical triangle pattern.
The indicators, like the 50 EMA, the MACD and the RSI, are rather messed up, giving different signals. Therefore, we need to focus on the US ADP data and technical levels if we want to perform a trade. On the higher side, the EUR/USD may face strong resistance at the 1.1890 level, and a bullish breakout at this level could lead the pair towards the 1.1926 level, whereas a breakout at 1.1850 could lead the pair towards 1.1830. Let’s brace for the US ADP Non-farm figures, before we can predict further movement in the EUR/USD pair. Good luck!
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