EUR/USD Is Technically Bearish And Could Extend Its Decline Once Below 1.1840

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EUR/USD Current Price: 1.1868

• Markit upwardly revised its Manufacturing PMIs for the EU and Germany.
• The official US ISM Manufacturing PMI fell to 59.5 in July from 60.6 previously.
• EUR/USD is technically bearish and could extend its decline once below 1.1840.

The EUR/USD pair trades in the 1.1860 price zone, little changed on a daily basis. It peaked at 1.1896 during the European session, as better than expected data maintained the market’s mood on the positive side. The sentiment took a turn for the worse during American trading hours, amid signs of slowing economic progress in the US.

Markit published the final versions of its July Manufacturing PMIs. The EU index was upwardly revised to 62.8, although slightly down from the previous 63.4, indicating that growth remains strong. The German figure was revised to 65.9, also better than the previous 65.1. In the US, the Markit Manufacturing PMI resulted at 63.4, but the official ISM index contracted from 60.6 to 59.5. Nevertheless, the sector has grown for the fourteenth consecutive month.

There won’t be relevant data to take care of on Tuesday, with investors waiting for US-employment-related figures later in the week. The EU will release the June Producer Price Index, while the US will unveil June Factory Orders.

EUR/USD short-term technical outlook

The EUR/USD pair has lost its bullish momentum. The 4-our chart shows that it is still holding above all of its moving averages, currently hovering around a bullish 20 SMA. The latter advances above the longer ones, with the 200 SMA heading south, somehow suggesting decreasing buying interest. Meanwhile, the Momentum indicator has crossed its midline into negative levels, while the RSI is stable at around 54.  The pair needs to advance beyond 1.1920 to actually turn bullish, while the risk will turn south on a bearish extension below 1.1840, the immediate support level.

Support levels: 1.1840 1.1805 1.1750

Resistance levels: 1.1920 1.1960 1.2000

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.