EUR/USD Could Extend Losses Below 1.1500

Technical analysis of Forex market

Key Highlights

  • EUR/USD failed to settle above the 1.1650 and 1.1665 resistance levels.
  • It broke a major rising channel with support near 1.1595 on the 4-hours chart.
  • GBP/USD is moving lower and struggling to stay above 1.3650.
  • The US ISM Manufacturing Index could decline from 61.1 to 60.4 in Oct 2021.

EUR/USD Technical Analysis

The Euro attempted an upside break above 1.1665 against the US Dollar. However, EUR/USD failed to gain momentum and formed a high near 1.1692.

Looking at the 4-hours chart, the pair started a fresh decline below the 1.1665 level. There was a sharp decline below the 1.1620 support. The pair even settled below 1.1600, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

Besides, there was a break below a major rising channel with support near 1.1595 on the same chart. It retested the 1.1535 level and is currently consolidating losses.

On the downside, an initial support is near 1.1535 level. The next major support is near 1.1500. A close below the 1.1520 level might push the pair towards the 1.1450 support.

On the upside, an immediate resistance is near the 1.1600 level and the 100 SMA. The next major resistance is near the 1.1620 level, above which the pair might rise towards the 1.1665 level. A close above 1.1665 could open the doors for a steady increase.

Looking at GBP/USD, the pair failed to clear the 1.3830 level and started a fresh decline. It is now struggling to stay above the 1.3650 support.

Economic Releases

  • US Manufacturing Index for Oct 2021 – Forecast 59.2, versus 59.2 previous.
  • US ISM Manufacturing Index for Oct 2021 – Forecast 60.4, versus 61.1 previous.