The EUR/USD has slipped the past couple of trading days and its current value has the world’s most liquid Forex pair within sight of technical lows achieved in late March. The current price of the EUR/USD is near the 17.40000 ratio and quick trading abounds.
On the 2nd of August. the EUR/USD was trading near the 19.00000 juncture, but has incrementally seen its value erode since then. The violent move lower on the 6th of August produced a rapid decline when the 1.180000 support level was punctured lower. Then, with a spike later in the day, a dramatic fall to nearly 17.23000 momentarily developed before recovering slightly.
The EUR/USD price action will get the attention of speculators and investment houses alike as they try to gauge direction. The problem for short-term speculators is that volatile trading can produce dangerous results when the value of the EUR/USD moves against their chosen path. The Forex pair technically may appear to be within the lower depths of its mid-term price range, but the EUR/USD was trading below the 1.17000 ratio for a long time before it punctured this resistance level in July of 2020.
The EUR/USD may be seeing a negative decline unfold as financial houses grow concerned about the potential affects from the Delta variant causing more economic problems in the months ahead. However, the complex picture also includes fundamental issues connected to central bank policy from the U.S and Europe. Technically, traders with short-term considerations may want to glance at mid- and long-term charts for more perspective.
Speculators may be inclined to suspect that the EUR/USD has been oversold in recent trading and may want to wager on reversals higher being demonstrated. Risk management should be used to guard against the potential of the Forex pair continuing to face headwinds if selling continues to add momentum.
Buying the EUR/USD is going against the current short-term trend in many respects. Traders who are conservative may not feel too attracted to the notion of wagering against the trend, but if an aggressive speculator decides to buy the EUR/USD near the 1.17400 to 1.17300 junctures and look for some momentary movement higher this may produce worthwhile results. The EUR/USD appears to be caught within a market that is expressing nervousness due to a lack of clarity short term. The volatility that nervous sentiment may cause, could offer technical traders a chance to find opportunities, but caution is advised.
EUR/USD Short-Term Outlook:
Current Resistance: 1.17550
Current Support: 1.17200
High Target: 1.17750
Low Target: 1.16940
