Euro (EUR) inched higher against the US Dollar (USD) on Tuesday, increasing the price of the EURUSD pair to more than 1.1800, ahead of the US durable goods order news. The technical bias remains bullish since the price of the EURUSD marked a higher high in the recent upside move.
As of this writing, the EURUSD pair is being traded around 1.1800. A few resistance levels may be seen as indicated below;
First Resistance : 1.1882, the high of August 21, 2020
Second Resistance :1.1900, the psychological number
Third Resistance : 1.1965, the major horizontal resistance
On the lower side, the price of the pair might find some significant support levels as listed below;
First Support : 1.1695, the horizontal support level
Second Support :1.1669, the 23.6% Fib level
Third Support : 1.1600, the psychological number
The technical bias is expected to remain bullish as long as 1.1669, the fib level support (which is also a major horizontal support zone) remains intact.
US Durable Goods Orders
The US Census Bureau is set to release the data concerning the US durable goods orders on Wednesday. According to the estimated reading of economists, the US durable goods orders registered a 4.3% reading in July as compared to 7.6% in the month before. The data related to the durable goods orders is the average measurement of orders received by manufacturers for durable goods including appliances and motor vehicles. Being sensitive to the US economy, the US durable goods data is considered as one of the key economic indicators. Generally speaking, a high reading indicates an upward trend for the US Dollar hence suggest a bearish market for the EURUSD and vice versa.
Given the microeconomic outlook of the EURUSD, buying the pair might be a justifiable approach in short to medium term trading.