Key Highlights
- EUR/USD is attempting a recovery wave from the 1.0485 zone.
- A major bearish trend line is forming with resistance near 1.0640 on the 4-hour chart.
- GBP/USD declined toward 1.2100 before it found support.
- The US ISM Manufacturing Index could increase from 47.6 to 47.9 in Sep 2023.
EUR/USD Technical Analysis
The Euro followed a bearish path below 1.0650 against the US Dollar. EUR/USD dived below the 1.0550 zone to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.0620 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
A low was formed near 1.0486 and the pair recently started an upside correction. There was a move above the 1.0550 level. The pair tested the 50% Fib retracement level of the downward move from the 1.0736 swing high to the 1.0486 low.
On the upside, immediate resistance is near the 1.0620 level. The first major resistance is near 1.0640. There is also a major bearish trend line forming with resistance near 1.0640 on the same chart.
The trend line is near the 61.8% Fib retracement level of the downward move from the 1.0736 swing high to the 1.0486 low. A close above 1.0640 could start a steady increase toward 1.0750.
If there is no break above 1.0640, the pair could start another decline. Immediate support is near the 1.0550 level. The next key support is seen near the 1.0520 level, below which it could test 1.0485. Any more losses might send the pair toward the 1.0350 level.
Looking at GBP/USD, the pair extended its decline toward the 1.2100 level and is currently attempting a recovery wave.
Economic Releases
- Germany’s Manufacturing PMI for Sep 2023 – Forecast 39.8, versus 39.8 previous.
- Euro Zone Manufacturing PMI for Sep 2023 – Forecast 43.4, versus 43.4 previous.
- UK Manufacturing PMI for Sep 2023 – Forecast 44.2, versus 44.2 previous.
- US Manufacturing PMI for Sep 2023 – Forecast 48.9, versus 48.9 previous.
- US ISM Manufacturing Index for Sep 2023 – Forecast 47.9, versus 47.6 previous
