EUR/USD Analysis: Will the Euro Continue to Slide Against the US Dollar?
- German data disappoints, limiting Euro’s upward potential.
- US Consumer Confidence data to drive market action.
- EUR/USD could extend its slide towards 1.1100.
The EUR/USD pair is trading cautiously around 1.1160, with investors waiting for key data releases later in the week. Both Eurozone and US inflation figures could impact central bank decisions in the near future.
Despite a generally positive market sentiment, the US Dollar remains weak as expectations for a Fed interest rate cut in September persist. On the other hand, the Euro struggles to attract interest due to underwhelming German economic data, including a decline in consumer confidence and a stagnant GDP.
Later today, the US will release housing price index data and CB Consumer Confidence numbers, which could provide further direction for the EUR/USD pair.
EUR/USD Technical Analysis: What Do the Charts Say?
While the EUR/USD pair is currently near a weekly low at 1.1149, technical indicators suggest a potential further downside. However, the pair remains above key moving averages and technical levels, indicating a lack of strong bearish momentum.
In the short term, a test of the 1.1100 level is possible if the weekly low is breached. However, sustained downward movement is unlikely in the current market conditions.
Support levels: 1.1145, 1.1100, 1.1065
Resistance levels: 1.1210, 1.1250, 1.1290
Analysis: The EUR/USD pair is facing downward pressure due to weak German data and ongoing uncertainty in the market. Investors are closely watching upcoming economic releases for further guidance. Traders should monitor key support and resistance levels to determine potential entry and exit points in this volatile market.