EUR/USD Forecast: At Risk Of Losing The 1.1800 Level Despite The Intraday Bounce

EUR/USD Current Price: 1.1853

• US employment-related data missed the market’s expectat6ons, hints a worsening situation.
• Markit will publish this Friday the preliminary estimates of its August PMIs.
• EUR/USD at risk of losing the 1.1800 level despite the intraday bounce.

The dollar pared its post-FOMC statement advance and gave up some of its recent gains, coming under selling pressure in US trading hours. EUR/USD fell to 1.1801, weighed by the poor performance of Asian and European equities, which closed well in the red. US indexes, however, got to bounce and post modest intraday gains, despite dismal US data. The country reported the Philadelphia Fed Manufacturing Survey, which resulted in 17.2 in August, missing expectations of 21. Initial Jobless Claims in the week ended August 14 surged to 1106K worse than the 925K expected.

Speculative interest maintained a cautious approach amid mounting uncertainty over the economic future, as coronavirus cases are on the rise in Europe and some regions of the US. This Friday, Markit will publish the preliminary estimates of its August PMIs for both economies, generally seen holding in expansion territory. The numbers, which usually have a large impact on currencies, could be overshadowed by the mentioned concerns.

EUR/USD short-term technical outlook

US session, with the bullish potential limited despite the intraday advance. In the 4-hour chart, the pair has been struggling to remain above a flat 100 SMA and remained below an also directionless 20 SMA. Technical indicators, in the meantime, remain within negative levels, indicating increased selling interest. The lower low for the week skews the risk to the downside. The pair survived the first test of the 1.1800 level but would like it pierce it on another test of it.” data-reactid=”49″>The  EUR/USD pair trades near a daily high of 1.1868 by the end of the US session, with the bullish potential limited despite the intraday advance. In the 4-hour chart, the pair has been struggling to remain above a flat 100 SMA and remained below an also directionless 20 SMA. Technical indicators, in the meantime, remain within negative levels, indicating increased selling interest. The lower low for the week skews the risk to the downside. The pair survived the first test of the 1.1800 level but would like it pierce it on another test of it.

Support levels: 1.1810 1.1770 1.1725

Resistance levels: 1.1860 1.1915 1.1960  

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