August 3, 2022
  • August 3, 2022

EUR / USD slowly falling | Forex action

By on July 19, 2021 0

At the start of another week in July, the major currency pair falls amid market participants’ sympathies towards the US dollar. EUR / USD is trading at 1.1810.

The ‘greenback’ got significant support from the latest US retail sales report, which showed 0.6% m / m in June after rising -1.7% m / m the previous month and against the expected reading of -0.4% m / m. The Core Retail Sales report showed 1.3% m / m against market expectations of 0.4% m / m. Despite the fact that Americans are currently spending more money on services, the demand for goods remains quite high.

The University of Michigan’s preliminary consumer sentiment report disappointed but was hardly noticed by investors. Nevertheless, the indicator fell to 80.0 points in July after being 85.5 points in previous months, when it was expected to reach 86.5 points.

In the H4 chart, EUR / USD forms another downward wave with the target at 1.1725. After testing this level, the instrument can continue to drop. From a technical point of view, this scenario is confirmed by MACD Oscillator: its signal line moves below 0, indicating that the descending wave is continuing.

As we can see from the H1 chart, the asset is also moving lower and could soon reach 1.1750. Later, the market may form a further correction and then resume trading lower with the target at 1.1725. From a technical point of view, this scenario is confirmed by the Stochastic Oscillator: its signal line moves steadily down below 25.