EUR/USD Current Price: 1.1632
- August UD Durable Goods Orders came in mixed, rising just 0.4% in the month.
- European governments are imposing restrictions amid resurgent coronavirus cases.
- EUR/USD is technically bearish with no signs of changing course.
The EUR/USD pair extended its weekly decline to 1.1611 on Friday, as demand for the greenback prevailed despite mixed US data. The country published August Durable Goods Orders, which increased 0.4%, below the 1.0% expected, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Speculative interest ignored the better shape of stocks’ indexes, as Wall Street got to close in the green. Concerns about sluggish economic growth amid the ongoing pandemic remain behind the latest dollar’s strength.
The shared currency, on the other hand, remained under pressure amid the second wave of coronavirus in the Union, forcing governments to impose restrictions. The week will start in slow motion, as the EU won’t publish relevant data, while the US will release a minor figure, the September Dallas Fed Manufacturing Business Index.
EUR/USD short-term technical outlook
The EUR/USD pair has turned bearish, and technical readings in the daily chart indicate that the slump may continue next week. The pair has fallen below a now mildly bearish 20 DMA, while the Momentum indicator consolidates within negative levels and the RSI heads lower near oversold readings. In the shorter-term, and according to the 4-hour chart, the risk is also skewed to the downside, as selling interest remains aligned around a firmly bearish 20 SMA, currently at 1.1665. Technical indicators, in the meantime, have pared their declines, but remain within negative levels, indicating limited buying interest.
Support levels: 1.1605 1.1560 1.1520
Resistance levels: 1.1665 1.1715 1.1760
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