EUR/USD Consolidating Below Key Resistances23 September, 2019 by Aayush Jindal in Market Analysis
- The Euro seems to be struggling near 1.1070 and 1.1080 against the US Dollar.
- A crucial bearish trend line is forming near 1.1080 on the 4-hours chart of EUR/USD.
- GBP/USD is trading with a positive bias above the 1.2350 and 1.2400 supports.
- The US Manufacturing PMI is likely to remain stable near 50.3 in Sep 2019 (Preliminary).
EUR/USD Technical Analysis
This past week, the Euro recovered slightly from the 1.1000 support area against the US Dollar. However, the EUR/USD pair seems to be facing hurdles near the 1.1070 and 1.1080 levels.
Looking at the 4-hours chart, the pair is trading well below the 1.1100 pivot level and the 200 simple moving average (green, 4-hours). There were a few attempts to surpass the 1.1070 and 1.1080 resistance levels, but the bulls struggled to gain momentum.
More importantly, there is a crucial bearish trend line forming with resistance near 1.1080 on the same chart. Therefore, the pair must settle above 1.1070, the bearish trend line, and the 200 simple moving average (green, 4-hours) to start a solid upward move.
The next key resistances are near 1.1150 and 1.1180. On the downside, an immediate support is near the 1.1000 level, plus the 61.8% Fib retracement level of the last major upward move from the 1.0926 low to 1.1108 high.
If there is a successful close below 1.1000 and a follow through below 1.0990, EUR/USD could continue to move down towards the 1.0925 and 1.0900 support levels.
Upcoming Economic Releases
- Germany’s Manufacturing PMI for Sep 2019 (Preliminary) – Forecast 44.0, versus 43.5 previous.
- Germany’s Services PMI for Sep 2019 (Preliminary) – Forecast 54.3, versus 54.8 previous.
- Euro Zone Manufacturing PMI Sep 2019 (Preliminary) – Forecast 47.3, versus 47.0 previous.
- Euro Zone Services PMI for Sep 2019 (Preliminary) – Forecast 53.3, versus 53.5 previous.
- US Manufacturing PMI for Sep 2019 (Preliminary) – Forecast 50.3, versus 50.3 previous.
- US Services PMI for Sep 2019 (Preliminary) – Forecast 51.5, versus 50.7 previous.