The Greenback is performing excellently today after a little break yesterday. The US Dollar’s strong performance coupled with mixed German data could see the EUR/USD pair drop towards the 1.1800 support region.
EUR/USD Reverses Earlier Bullish Attempt
The EUR/USD pair began the day in a bullish manner. The market rally saw the pair attempt to surpass the 1.1900 resistance level. However, the rally was short-lived, following strong performances from the US Dollar over the past few hours.
The Greenback’s strong performance was further supported by the mixed economic data coming out from Germany, Europe’s leading economy. At the time of this report, the EUR/USD pair is trading around 1.842.
EUR/USD chart. Source: FXEMPIRE
Further declines could take place over the coming hours as the US market swings into action. The recovery of the Greenback and the poor performance of the Euro could see the pair test the 1.1800 support level soon.
Factory orders in Germany are down by 3.7% month-over-month. This is way below the analysts’ consensus of 1% and even lower than the -0.2% recorded in the previous month. Furthermore, Germany’s construction PMI stands at 47, just slightly below the 48 estimated by analysts.
EUR/USD Could Retest July 2 Lows
The US Dollar is performing well at the moment. If the currency maintains its performance for the next few hours, the market could retest 1.1835, a support line that was last seen on July 2.
If the EUR/USD pair is to become bullish again, they will have to surpass the daily high of 1.1895. A strong resistance point awaits the pair at 1.1910, and with the poor data from Germany, it is unlikely that the EUR/USD would attempt to reach the resistance level at this time.
Traders will focus their attention on the PMI data expected from the United States in a few minutes. The data would give a clearer picture of the pair over the coming hours.
This article was originally posted on FX Empire
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