EUR/USD Holds On To Its Recent Gains But Further Advances Seem Unlikely

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: 1.1754

• Germany published a better version of its Q2 GDP, upwardly revised to 1.6% QoQ.
• The focus shifts to US Durable Goods Orders, seen down 0.3% MoM in July.
• EUR/USD holds on to its recent gains but further advances seem unlikely.

The EUR/USD pair peaked at 1.1764, a fresh weekly high, but kept trading within familiar levels and ended the day in the 1.1750 price zone. Market participants remained optimistic, although the enthusiasm cooled during US trading hours, with local indexes posting modest intraday gains, after European ones ended mixed.

On the data front, Germany published the second estimate of its Q2 GDP, which came in better than anticipated, upwardly revised from 1.5% to 1.6% QoQ. The US released the August Richmond Fed Manufacturing Index, which contracted to 9, well below the 25 expected and the previous 27, and July New Home Sales,  up 1%, better than the -2.7% expected. On Wednesday, the focus will be on the German IFO Survey, with the August Business Climate foreseen at 100.4, while the US will release July Durable Goods Orders, foreseen at -0.3%.

EUR/USD short-term technical outlook

The EUR/USD pair maintains its positive perspective in the near term, although the upward strength is limited. The 4-hour chart shows that the pair holds above a bullish 20 SMA but also that it met sellers around a bearish 100 SMA. In the meantime, technical indicators hold within positive levels, although they have lost their bullish strength. The pair could still approach 1.1800 but further gains seem unlikely. On the other hand, bears could take control if the pair pierces the 1.1700 support.

Support levels: 1.1700 1.1660 1.1620

Resistance levels: 1.1790 1.1820 1.1865

Image by PublicDomainPictures 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.