The euro dropped against the dollar after disappointing data from Germany. What level then should traders pay attention to? The following 6 August EURUSD Technical Outlook shows.
6 August, OctaFX – Data from the German Federal Statistical Office, Destatis, showed that factory orders in June fell by 4% in June, driven primarily by the orders from Non-EU countries.
This was the biggest decline since January 2017 and reflects the ongoing trade differences between Germany and the United States. Orders from Non-EU countries fell by more than 5.9%.
This data covered a period before the meeting between Donald Trump and Jean Claude Juncker of the EU, who agreed to engage in talks.
6 August EURUSD Technical Outlook
The EURUSD pair dropped to the lowest level since early July. It is now trading at 1.1535, which is below the 100 and 50-day moving averages.
The RSI has fallen to below 30 and the Average Directional Index (ADX) has climbed to above 40.
This is an indication that the pair could continue moving lower, though traders should pay close attention to the RSI level at 16, which is the recent lowest level.
This article about 6 August EURUSD Technical Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.