The EURUSD pair remains trapped in a narrowing price range or pennant pattern. In the meantime, what should traders expect next? The following 30 July EURUSD Technical Forecast explains.
30 July, GKFX – At press time, the currency pair is trading at 1.1650, having created a bearish outside-day candle on Thursday.
So, technicals are biased to the bears, meaning the pair could find acceptance below 1.1598 (base of the pennant pattern) if the preliminary German consumer price index (CPI) misses estimates.
Focus on German preliminary CPI reading
On the other hand, an above-forecast preliminary German consumer price index (CPI) may push the spot above 1.1735 (pennant resistance).
The data is due at 12:00 GMT and is expected to show the CPI rose 0.4 percent month-on-month in July from June’s print of 0.1 percent.
30 July EURUSD Technical Forecast
A break below 1.1598 (pennant support) would validate Thursday’s bearish outside-day candle and allow a drop to 1.1508 (June 21 low + 50-month MA). A violation there would expose support lined up at 1.1448 (50% Fib R of Jan 2017 low – Feb 2018 high) and 1.1370 (200-week MA).
On the higher side, a move above 1.1735 (pennant resistance) would open up upside towards 1.18 (psychological hurdle) and 1.1852 (June 14 high).
This article 30 July EURUSD Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.