The Euro (EUR) inched lower on Friday against the US Dollar (USD), which resulted in a drop in EURUSD’s price taking it to less than 1,1200. The pair’s price decreased following the release of major economic news. Given the pair’s price movement over the past few days, the technical bias is expected to turn bullish because the pair’s price has been lower high in the recent downside move.
EUR/USD Technical Analysis
Currently, the pair is being traded around 1.1081, The support that serves as a contingency mechanism to keep the price from further dropping can be seen about 1.1071, the immediate main horizontal support ahead of 1.0997, the 23.6% Fib level and then a while, trendline support of 1.0930, as shown in the graph.
On the upside, A resistance that may stop it from going above this point can be seen at 1.1086, an immediate trendline resistance, sometime later at 61.8% Fib level, resistance of 1.1208 and then at 1.1410, major horizontal resistance is shown in the graph above. The technical bias may remain bearish as long as 1.1145, the major horizontal resistance level stays unblemished.
USD Nondefense Capital Goods Orders Excluding Aircraft,
In the United States, the figure concerning the Nondefense Capital Goods Orders Excluding Aircraft is -0.5%, in this month downbeat with the economist expectation of -0.2% but risen from the month before percentage i.e -0.6%. The data is sourced from the news released by the US Census Bureau.
The Nondefense Capital Goods Orders Excluding Aircraft estimates the cost of capital goods orders issued by suppliers (capital goods are durable goods used in the production of goods or services), which means goods intended to last for three years or longer, excluding the defense and aircraft sectors. Because these green goods also involve large investments that are sensitive to the economy of Us. the positive reading is following the bullish trend for the US and vice-versa.
Considering the overall price behavior of the pair over the last couple of days, buying the EURUSD around current levels can be a good decision in the short to medium term.