EUR/USD Consolidates Near The Monthly Low, The Risk Is Skewed To The Downside

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

EUR/USD Current Price: 1.1732

• European macroeconomic data keeps reflecting a slow economic comeback
• The US Producer Price Index surged to 7.8% YoY in July, spurring temporal demand for safety.
• EUR/USD consolidates near the monthly low, the risk is skewed to the downside.

The EUR/USD pair ended Thursday pretty much unchanged in the 1.1740 price zone, as the greenback gave up the modest gains achieved at the beginning of the American session, following the release of the July Producer Price Index, which was up 7.8% YoY, above the market’s expectations. The number brought back to the spotlight heating US inflation, weighing on equities and spurring demand for safety.

 Data coming from the EU failed to impress, as June Industrial Production in the Union was down by 0.3% seasonally adjusted, missing the market’s expectations. On Friday, the Union will release the June Trade Balance, while the US will publish the preliminary estimate of the Michigan Consumer Sentiment Index, foreseen at 81.2, unchanged from July’s outcome.

EUR/USD short-term technical outlook

The EUR/USD pair retains its neutral stance in the near-term. The 4-hour chart shows that it has spent the day hovering around a mildly bearish 20 SMA, while the longer moving averages head lower, far above the current level. Meanwhile, the Momentum indicator advances above its midline, while the RSI indicator remains flat at around 42. Bulls may have some chances on a break above 1.1750, but at this point, bears retain control of the pair.

 Support levels: 1.1705 1.1660 1.1620

Resistance levels: 1.1750 1.1790 1.1830

Image by 👀 Mabel Amber, who will one day from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.