- Core German data could bring more direction to the market
- The nearest support level is at 1.1527
- 1635 is the closest resistance level
The EUR remains in a rather vulnerable position right now. Yesterday, the EUR/USD traded in the region of 1.1550 in the run-up to the release of vital German economic data.
The currency pair is busy extending its downward shift after managing to fall through an important support level. This opened up the possibility of it testing its lowest level so far for the year at around 1.1500 – and perhaps even lower.
The other side of this coin is that the USD is currently waiting for a driver to push the US Dollar Index (DXY) past the year-to-date high in the 95.60 to 95.65 range, with uncertainty over the US-China trade war always hovering in the background.
Looking at the next few days, EUR traders will be closely monitoring Germany’s Industrial Production and Trade Balance data for June.
On the other side of the Atlantic, JOLTs Job Openings could become an important catalyst for change, along with the API report on American supplies of crude oil and the NFIB Index.
There are a few EUR/USD levels that traders should be watching closely right now. The currency pair is trading sideways at 1.1554 at the moment, with the nearest support level at 1.1527 (28 June’s low). The next support level is at 1.1508, which is 29 May’s low.
After that comes 1.1479, a low that was reached on 20 July last year.
To the upside, if the EUR/USD manages to break through the 10-day simple moving average (SMA) at 1.1635, the next target could become the 21-day SMA at 1.1661 and finally the 30 July high of 1.1745.
