EUR/USD Forecast — Euro Remains At Risk of More Declines Vs US Dollar

• - The Euro failed to move past the 1.1615–20 resistance and declined against the US Dollar.
• - There was a break below a major bullish trend line with support at 1.1602 on the hourly chart of EUR/USD.
• - Recently in the US, the Producer Price Index for July 2018 was released by the Bureau of Labor statistics, Department of Labor.
• - The outcome was below the forecast of +0.2% as there was no change in the PPI in July 2018 (MoM).

US Producer Price Index

Recently in the US, the Producer Price Index for July 2018 was released by the Bureau of Labor statistics, Department of Labor. The market was looking for a rise of 0.2% in the PPI in July 2018 compared with the previous month.

The actual result was below the forecast of +0.2 as there was no change in the PPI in July 2018. Looking at the yearly change, there was a rise of 3.3% in the PPI, which was less than the forecast of +3.4% and also below the last +3.4%.

The EUR/USD pair started a minor upside move after trading as low as 1.1515, but it is likely to face many hurdles on the upside.

EUR/USD Technical Analysis

The Euro faced a lot of sellers near the 1.1615–20 resistance against the US Dollar. The EUR/USD pair started declining and broke many support levels such as 1.1600, 1.1580 and 1.1540 to settle below the 100 hourly simple moving average.

During the decline, there was a break below a major bullish trend line with support at 1.1602 on the hourly chart of EUR/USD. The pair traded as low as 1.1515 and it is currently correcting higher towards the 23.6% Fib retracement level of the last drop from the 1.1618 high to 1.1515 low.

On the upside, there are many resistances near the 1.1555 level. There is also a bearish trend line in place near 1.1552, which coincides with the 50% Fib retracement level of the last drop from the 1.1618 high to 1.1515 low.

Therefore, if the pair corrects higher, it is likely to face sellers near the 1.1540 and 1.1550 levels. On the downside, the 1.1520 and 1.1515 are supports, below which, the price could test the 1.1500 level.

Originally published at ForexGator.com.