EUR/USD Is On A Bearish Path And Would Likely Extend Its Decline Towards 1.1600

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EUR/USD Current Price: 1.1677

• US Federal Reserve’s hints on tapering undermined the market’s mood
•  US Initial Jobless Claims for the week ended August 13 unexpectedly improved to 348K.
• EUR/USD is on a bearish path and would likely extend its decline towards 1.1600.

The EUR/USD pair bottomed at 1.1665 early on Thursday, a fresh 2021 low, recovering afterwards but incapable of recovering above the 1.1700 threshold. Risk-off led the way, with most global indexes closing in the red, reflecting the dismal mood triggered by the US Federal Reserve after the FOMC Minutes hinted at soon to come tapering.

Earlier in the day, the EU published the June Current Account, which posted a seasonally-adjusted surplus of €21.8 billion. US data was mixed, as the August Philadelphia Fed Manufacturing Survey contracted to 19.4, missing expectations, while Initial Jobless Claims for the week ended August 13 unexpectedly improved to 348K. The news brought some relief to market players, although not enough to push high-yielding currencies higher. On Friday, Germany will publish the July Producer Price Index, while the US calendar has nothing relevant to offer.

EUR/USD short-term technical outlook

The EUR/USD pair maintains its bearish bias in the near term. The 4-hour chart shows that the price remains well below a bearish 20 SMA, which remains far below the longer ones. In the meantime, technical indicators have resumed their declines within negative levels after corrective oversold conditions. Further declines are likely on a break below 1.1660, the immediate support level, while the corrective advance could extend to 1.1750 if the pair advances beyond 1.1703, the daily high.

Support levels: 1.1660 1.1620 1.1570

Resistance levels: 1.1705 1.1750 1.1790

Image Sourced 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.