The European currency shows a slight decline against the US dollar during the Asian session, developing a fairly stable "bearish" trend, which pushes the instrument to new local lows since April 5. There is still an atmosphere of distrust of risk in the market. Investors are alarmed by another increase in the incidence of coronavirus in the world, fearing that the pace of economic recovery may slow down again, and some countries will introduce new restrictive measures.
EUR/USD euro dollar forecast for July 22-23, 2021
The macroeconomic statistics published yesterday from Germany and the eurozone did not provide additional support for the euro. Thus, production inflation in Germany accelerated from +7.2% y/y to +8.5% y/y in June, which coincided with analysts ' forecasts. On a monthly basis, the indicator slowed down from + 1.5% m/m to +1.3% m/m, turning out to be slightly better than forecasts at +1.2% m/m.
At the moment, investors are preparing for the meeting of the European Central Bank (ECB), which will be held tomorrow. Analysts do not expect any changes in the vector of the monetary policy of the regulator, but the comments of officials and updated forecasts for the near future will be very interesting.
Support and resistance levels
The Bollinger bands on the daily chart show a moderate decline within the forex forecast. The price range is expanding from below, freeing the "bears" the way to new local lows. The MACD indicator is declining, maintaining a weak sell signal (the histogram is located below the signal line). Stochastic is declining somewhat more confidently, indicating the growing risks of oversold euro in the ultra-short term.
Resistance levels: 1.1800, 1.1846, 1.1900, 1.1950.
Support levels: 1.1754, 1.1700, 1.1657, 1.1600.
Trading Scenarios
Thus, EUR/USD forecast of the euro dollar for July 22-23, 2021, to open new short positions, you can rely on a confident breakdown of the level of 1.1754 down. Take profit - 1.1657. The stop loss is 1.1800. Implementation period: 1-2 days.
A rebound from the level of 1.1754 as a support, followed by a breakdown of the 1.1800 mark up, may be a signal for new purchases with the goal of 1.1900. The stop loss is 1.1754.