EUR / USD Current Price: 1.1778
- Durable goods orders in the United States beat expectations at 11.2% in July.
- Dollar stronger, although investors maintain a cautious approach.
- EUR / USD may accelerate its decline on a break below 1.1750.
EUR / USD fell below 1.1800 ahead of the US opening, as optimism at the start of the week faded. The major pairs spent the first half of the day consolidating in tight ranges as the greenback gained some strength ahead of the release of durable goods orders in the US. According to the official report, orders rose 11.2% in July, much better than the 4.3% expected. Non-defense capital goods orders excluding aircraft with expectations of 1.9%. The greenback accelerated its lead after now trading near a daily low at 1.1771.
The EU did not release relevant macroeconomic data on Wednesday, while stocks fail to provide clues, hovering around their opening levels.
Short-term technical outlook EUR / USD
EUR / USD is moving closer to 1.1750 last Friday low and immediate support. The 4-hour chart readings support a further bearish extension, with the upside being contained by the 20 and 100 SMAs, as technical indicators move south below their midlines. A more pronounced drop, however, is still unclear given the market’s cautious approach to the dollar.
Support levels: 1.1750 1.1710 1.1665
Resistance levels: 1.1800 1.1840 1.1885
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