EUR/USD Eased Within Range But Still Has Chances Of Recovering Ground

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EUR/USD Current Price: 1.1776

• US data failed to impress, the focus shifts to July Retail Sales.
• Stocks edged lower amid concerns about the Delta variant and tensions in the Middle East.
• EUR/USD eased within range but still has chances of recovering ground.

The EUR/USD pair is down on Monday, as a sour market’s mood has benefited the safe-haven dollar. The EUR/USD pair bottomed at 1.1766 and finished the day a handful of pips above the level. The dismal sentiment was the result of tensions in the Middle East and concerns related to US growth, now that the coronavirus Delta variant storms the country.

Sharp losses in Asian and European stocks markets closed in the red, dragging Wall Street lower at the opening, although US indexes trimmed most of their intraday losses to end the day mixed. Data-wise, the macroeconomic calendar had little to offer, as the EU did not publish data, while the US released the August NY Empire State Manufacturing Index, which came in at 18.3, missing the market’s expectations of 29 and contracting from the previous 43.

On Tuesday, the EU will publish the preliminary estimate of the Q2 Gross Domestic Product, foreseen at 2% Qo1, while the US will release July Retail Sales, foreseen down 0.2% in the month. The latter will also release Industrial Production and Capacity Utilization for the same month.

EUR/USD short-term technical outlook

From a technical point of view, the EUR/USD pair is neutral-to-bullish. The 4-hour chart shows that the pair retreated from a flat 100 SMA, but also that it holds above a bullish 20 SMA. Technical indicators have pared their declines from overbought readings and are aiming to recover, indicating limited selling interest at the time being. The bearish case may become firmer on a break below 1.1750, the immediate support level.

 Support levels: 1.1750 1.1705 1.1660  

Resistance levels: 1.1790 1.1830 1.1880

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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.