After failing to advance further north of the key resistance region at 1.1630, EURUSD has embarked in a correction lower to the current mid-1.1500s. What is now the focus of the pair? Study the following 23 August EURUSD Technical Forecast to have an idea.
23 August, OctaFX – After six consecutive sessions with gains, the pair is now trading on the defensive as EUR-bulls failed to extend the rally beyond 1.1600 the figure on a more sustainable fashion.
EURUSD looks to PMIs, ECB
The inability of spot to break higher motivated sellers to step in, dragging spot lower along with a pick up in the demand for the buck. In fact, the US Dollar Index (DXY) me support in the 95.00 neighbourhood, attracting dip-buyers.
In the data space, the ECB will publish its minutes from the latest minutes while advanced PMIs for the month of August are also due for release. Across the pond, the usual weekly report on the labour market is expected seconded by flash PMIs and July’s New Home Sales.
23 August EURUSD Technical Forecast
At the moment, the pair is losing 0.27% at 1.1564 and a break below 1.1539 (21-day SMA) would target 1.1453 (10-day SMA) en route to 1.1299 (2018 low Aug.15). On the upside, the next hurdle emerges at 1.1623 (high Aug.22) seconded by 1.1629 (high Aug.8) and finally 1.1745 (high Jul.31).
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