The euro currency corrected higher last week. The rise being seen with the EUR/USD Forex market seems more of a correction than a broad move higher. There is little substance to back this current uptrend.
With that said, the short term twenty (20) day simple moving average has a bearish slope and the euro currency is trading below 1.1985. The longer term two hundred and one hundred (100, 200) day simple moving averages are flat. This is not good signs for the EUR/USD bulls.
Monday’s economic calendar starts the month off with a bang. The euro currency and the U.S. dollar should see volatility all day. The euro area is publishing monthly manufacturing purchasing mangers’ index data. Germany will also release monthly manufacturing purchasing mangers’ index data. Germany will also publish monthly retail sales data.
IHS Markit for the United States will publish their monthly manufacturing purchasing mangers’ index. The Institute for Supply Management (ISM) will also release their monthly manufacturing purchasing mangers’ index. IHS Markit will also publish final monthly purchasing mangers’ indices for the United Kingdom.
Looking at the above daily EUR/USD MT 4 price action chart, the 14 day relative strength index (RSI) is flat. Coupled with the bearish 20 day simple moving average and the flat 100 and 200 day simple moving averages, the euro currency looks ready for more possible losses.
Daily Euro Currency Technical Analysis (EUR/USD)
The EUR/USD is below all the key daily simple moving averages with immediate technical support at 1.1820. For now this benchmark Forex market looks directionless below 1.20.
The technical indicators, which are above their mid-lines do not signal much in the way of price direction.
There is immediate technical resistance lining up at 1.9020. The next upside barrier lines up at 1.1985. On the downside, a daily close below the technical support in play at 1.1840 opens the door to challenge the downside barrier at the monthly low price point of 1.1750.
The next level of technical support comes into play at the March bottom of 1.1703.