The pair fell for a sixth consecutive day on Tuesday as deepening energy concerns in the Eurozone, monetary policy divergence, and risk-off sentiment among traders continue to favor the versus major rivals.
At the time of writing, the EUR/USD pair is trading at the 0.9590 zone, 0.2% below its opening price. The managed to advance to a daily high of 0.9670, but the recovery faltered at the beginning of the New York session. However, the shared currency managed to stay above Monday’s two-decade low.
Mixed data from the U.S. benefited the greenback. dropped 0.2% in August, less than the 0.4% decline expected. The Nondefense excluding Aircraft increased by 1.3%, beating the market consensus of 0.2%.
On the other hand, housing price data showed worrying results as the retreated by 0.6% MoM in July while the S&P/Case-Shiller grew by 16% YoY in July.
August increased more than expected by 0.685M MoM and, with the Conference Board’s , which advanced from 103.6 in August to 108 in September, helped the greenback to gain momentum and reverse early losses.
Technical View – EUR/USD
From a technical perspective, the EUR/USD pair retains the short-term bearish bias according to indicators on the daily chart. The RSI remains in oversold territory but is starting to move higher, while the MACD keeps printing higher red bars, signaling that the bears are in the driver’s seat.
On the downside, the following support levels are seen at the September 26 low of 0.9552, followed by 0.9500, where the lower end from a descending channel traced from the February high reinforces the psychological level.
On the other hand, short-term resistances could be faced at this week’s highs around 0.9700 and the 0.9790 level, mid-line of the mentioned channel. Still, the euro would need to regain the 20-day SMA, currently around 0.9900, to ease the immediate selling pressure and aim for a steeper recovery.
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