Bears are looking to break the 1.1020 support level

EUR/USD Current Price: 1.1047

• Sentiment soured ahead of fresh US data that could deter the Fed’s path.
• US ISM manufacturing PMI is forecast at 47.5 in August, pointing to another contraction.
• EUR/USD has turned bearish in the short term, support at 1.1020.

EUR/USD extended its slide on Tuesday, trading in the 1.1040 region. The US dollar is benefiting from a risk-averse environment, with Asian and European stocks turning negative and pulling alongside Wall Street futures. Speculative interest awaits further clues from the United States (US) that could provide new insights into what the Federal Reserve (Fed) might do when it meets in September.

The US will release the ISM Manufacturing Purchasing Managers (PMI), forecast at 47.5 in August, improving from 46.8 in July. In addition, S&P Global will release the final estimate of its August manufacturing PMI, which is expected to be confirmed at 48. Readings below 50 indicate a contraction in the sector, and while the readings could improve from the previous , they will continue to reflect distressed businesses. exit.

EUR/USD short-term technical outlook

Technically, the daily chart for the EUR/USD pair shows that the bears are gaining confidence. The pair is currently facing a simple moving average (SMA) of 20, seeing intraday buyers on dips below it. At the same time, the 100 and 200 SMAs are aiming marginally higher, well below the shortest. Finally, technical indicators continue to gain downward momentum within the positive levels, but are getting closer to the median lines. Overall, not enough to confirm another leg south, but enough to kill the chances of an upbeat run.

In the short term, and according to the 4-hour chart, EUR/USD is poised to extend its slide. The pair is developing below the 20 and 100 SMAs, with the shorter one crossing below the longer one. The 200 SMA, meanwhile, remains flat at around 1.0975, providing dynamic support. Meanwhile, technical indicators lack directional strength but remain below the median lines, suggesting a lack of buying interest.

Support levels: 1.1020 1.0975 1.0940

Resistance levels: 1.1090 1.1145 1.1190