Eurusd Lower On Strong Us Data

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Eurusd Lower On Strong Us Data

Eur/Usd Trades Under 1.1200 On Strong Us Data

EUR/USD is trading below the 1.1200 resistance on Monday and shows a bearish trend. The recent data from the USA showed a stronger US Durable Goods which was a lot higher than the expectations.

The recent data was supportive of the US Dollar and led to a rebound in the EUR/USD pair. Technical analysis of EUR/USD shows that the bullish momentum has paused for now. However, the bulls are still in control of the EUR/USD.

Eur/Usd Trades Above Sma Lines

After all, the Euro/Dollar pair is still trading above the 20, 100, and 200 SMA, which is a sign of bullish strength. The 20 SMA near the 1.0980 handle shows a vertical slope, a sign of bullish presence.

Similarly, the 100 and the 200 SMA shows that the trend remains bullish despite the short-term setback. Similarly, the momentum indicators are also above the midlines which means the bears lack strength for now.

On the H4 chart of EUR/USD, the 20 SMA continues to provide support near 1.1145. Similarly, the 100 and 200 SMA also show that the odds of a deeper decline are very slim.

If we look at the support levels, the nearest one is 1.1145, and the next one is around 1.1100. If the EUR/USD continues to move beyond these support levels, the next stop for bears will be 1.1065.

As for the resistance levels, the first one is at 1.1210, with the next one at 1.1250. Any more selling of the US Dollar against the Euro will open the doors to the next resistance at 1.1290.

Overall, EUR/USD has edged lower from its highs near 1.1200 and is now seen just below it. The recent upside in the EUR/USD was driven by Powell's comments, but it seems that the market reaction was a little too strong.

Meanwhile, the IFO Business Climate Index from Germany showed a reading of 86.6, a decline from July's reading of 87. This reading shows that the business conditions in Germany have turned sour in the last few months.

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