- The 50 days EMA (Exponential Moving Average – Red Line) is held at 1.1805. Thus, it’s supporting a selling trend in the EUR/USD pair.
- The US Dollar Index rose due to the positive macroeconomic data, and it reached 92.65.
- Forex trading market participants may look for a sell trade below 1.1800 with an initial target of $1.1765 and $1.1725 levels.
The EUR/USD closed at $1.1814 after reaching a high of $1.1852 and a low of $1.1809. The EUR/USD currency pair dropped again on Friday after the US dollar found strength and the Euro currency came under pressure for the day. Thus, the free forex signals and forecast is to take a sell position in the EUR/USD pair below the 1.1825 level with a target of 1.1765.
If you are interested in trading EUR/USD with forex robots, check out our guide.
A stronger dollar drives the selling trend in EUR/USD
The US Dollar Index rose due to the positive macroeconomic data, and it reached 92.65 on Friday. It recovered previous losses that added strength to the greenback against its rival currencies like the euro. The 10-year Treasury note yield in the United States rose to 1.35% amid expectations that higher inflation will persist for a longer period, adding strength to the US dollar and weighing on the EUR/USD pair.
European Commissioner Paolo Gentiloni Remarks
At the Eurogroup meeting, European Commissioner Paolo Gentiloni said that there were still clouds on the horizon despite a stronger than expected second quarter. Thus, countries must remain vigilant about the coronavirus pandemic and potential supply bottlenecks.
The commissioner also spoke about the risk of growing inflation throughout the European Union and said it is expected to be temporary. He added that the 18 national economic recovery plans had been approved, and the work was started. He also said that he was not looking for an economic rebound but for sustained and sustainable growth.
Economic Data Review:
In the Eurogroup meeting, the ministers also discussed the uneven impact of the COVID-19 across the economic sectors and regions. According to a report, 13 nations in the EU saw a surge in the case numbers of infections. While the European Centre for Disease Control also confirmed that 71% of adults in the EU had been fully vaccinated.
At 11:00 GMT, the German Final CPI from August came in line with the expected 0.0% on the data front. French industrial production fell by 0.3% in July, versus the expected 0.4%, weighing on the single currency euro, adding to the EUR/USD pair’s losses. At 13:00 GMT, Italian industrial production surged to 0.8% against the forecasted 0.0%. It supported the euro and limited the decline in EUR/USD.
From the US side, at 17:30 GMT, the PPI from August advanced to 0.7% against the estimated 0.6%. It supported the US dollar and added weight to EUR/USD. In August, the Core PPI rose to 0.6%, versus the expected 0.5%, bolstering the US dollar and adding to the EUR/USD pair’s losses. At 19:00 GMT, the Final Wholesale Inventories remained flat with the forecasts of 0.6%.
The single currency euro was also lower on the day after the President of the European Central Bank, Christine Lagarde, commented. She said that the economy of the EU was recovering, but the spread of the Delta variant of COVID-19 could delay a total reopening of the economy. She added that the ECB had revised its economic forecast with more positive expectations of growth and inflation for the year, but the speed of the economic recovery would depend on the evolution of a pandemic in the coming months.
Free Forex Signals and Forecast – Daily Technical Levels
Support Resistance
1.1807 1.1815
1.1804 1.1820
1.1799 1.1824
Pivot Point: 1.1812
Free Forex Signals and Forecast – Sideways Channel Breakout
The EUR/USD is trading bearishly below the 1.1800 resistance mark. On the 4 hour chart, the breakout of the double bottom pattern is now operating as a resistance for the EUR/USD.
The formation of candles below the 1.1800 level could drive an additional selling trend until the 1.1750 support level. Furthermore, the EUR/USD pair is currently trading with a bearish bias at the 1.1785 level as investors are pricing in the weaker than expected German WPI m/m from Destatis.
On the downside, the violation of the 1.1750 support level can drive the EUR/USD pair towards the 1.1725 and 1.1705 marks. The 50 days EMA (Exponential Moving Average – Red Line) is held at 1.1805. Thus, it’s supporting a selling trend in the EUR/USD pair.
The oscillator indicator, Stochastic RSI, holds in a selling zone, demonstrating the chances of a selling trade in EUR/USD.
EUR/USD Free Forex Signals and Forecast
The Forex trading market participants may look for a sell trade below 1.1800 with an initial target of $1.1765 and $1.1725 levels.
Instrument: EUR/USD
Order Type: Sell Order
Entry price: 1.1800
Stop Loss: 1.1825 (25 Pips)
TP1: 1.1765(35 Pips)
TP2: 1.1725 (75 Pips)
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.75
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