EUR/USD Analysis: Bearish Trend Continues as USD Gains Strength
The EUR/USD pair is currently trading at 1.1047 as the mood sours ahead of fresh data from the United States that could impact the Federal Reserve’s decisions. The US ISM Manufacturing PMI is expected to show a contraction at 47.5 in August, which is still a negative sign for the economy.
As the US Dollar benefits from a risk-averse environment, the EUR/USD pair has turned bearish in the near term, with support levels at 1.1020. Speculative interest is focused on the upcoming data releases from the US, which could provide insights into the Fed’s next moves.
Technical Outlook for EUR/USD
From a technical perspective, the daily chart shows that bears are gaining confidence as the pair battles the 20 Simple Moving Average (SMA). While the 100 and 200 SMAs are pointing higher, they are still below the shorter one. Technical indicators are also showing downward momentum, indicating a potential further decline in the pair.
On the 4-hour chart, EUR/USD is expected to continue its slide as it trades below the 20 and 100 SMAs. The 200 SMA is providing dynamic support at around 1.0975. Overall, the technical indicators suggest a lack of buying interest in the pair.
Support levels: 1.1020, 1.0975, 1.0940
Resistance levels: 1.1090, 1.1145, 1.1190
Overall, the bearish trend in the EUR/USD pair is likely to continue as the US Dollar gains strength and economic data points to a contraction in the manufacturing sector. Traders should watch out for key support and resistance levels to determine their trading strategies in the near term.