- EUR / USD tested the 1-1600 level to no avail, thanks to the strength of the US dollar.
- The US dollar index cuts some of its losses from last week, it stands at 94.32.
- EUR / USD is pressed lower as the daily chart shows and 1 hour could test the 2021 lows.
The EUR/USD it is trading at 1.1559, losing 0.09% during the American session at the time of writing. Market sentiment has toned down throughout the day, as evidenced by US stock indices that trade at a loss of 0.12% to 0.42%.
The US dollar index that tracks the dollar’s performance against a basket of six pairs rises 0.24%, currently at 94.32, boosting the US dollar, putting downward pressure on the EUR / USD pair.
In the European session, the EUR / USD pair advanced mainly behind the British pound. Over the weekend, some members of the Bank of England raised concerns about inflation and the possibility of rate hikes, as it threatens to be tighter than expected. While GBP / USD rose close to 1.3700, EUR / USD reached 1.1585 but later retraced.
On Tuesday, the Eurozone economic agenda will present the Zew Economic Sentiment Survey and the current situation. At the same time, the ECB’s chief economist, Philip R. Lane, and the ECB’s member, Frank Elderson, will be in contact with the cables. On the other hand, the JOLTS job offers for August, expected at 10.925M, could offer a new boost for EUR / USD traders.
EUR / USD Price Forecast: Technical Outlook
Daily chart
EUR / USD is trading well below the daily moving averages (DMA), moving towards last Friday’s lows around 1.1540. Momentum indicator like the Relative Strength Index (RSI) is at 32, breaking out of oversold levels, suggesting that the downside bias persists. A break below 1.1540 could open the door to the 2021 low at 1.1528.
1 hour chart
The single currency tested last Friday’s highs around 1.1585, unsuccessfully retreating below the daily pivot point at 1.1566. On the upside, the confluence of the 50 SMA and the daily pivot point impose stiff resistance around 1.1566.
On the other hand, the confluence of the S1 pivot point level at 1.1547 near last Friday’s low at 1.1540 acts as support. However, the Relative Strength Index (RSI) at 43 points to the downside, suggesting that a move towards the latter is in the charts.
ADDITIONAL LEVELS
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