The EUR/USD pair is being adjusted against the background of a decline in the US dollar, trading around the 1.1802 mark.
EUR/USD Euro dollar forecast for July 28-29, 2021
The European currency is slowly weakening as the pace of recovery in the leading economies slows down. The EU countries did not have time to eliminate the consequences of the severe flooding, as in France the authorities were forced to directly address citizens who took to the streets the day before, dissatisfied with the introduction of mandatory "COVID-certificates". Economic statistics also do not add confidence in the future course. The German business expectations index for July fell to 101.2 points, and the IFO business climate index fell to 100.8 points from 101.7 points in June.
The negative dynamics could continue, but yesterday the US dollar index fell more significantly, dropping to the level of 92.500 on negative statistics on new home sales. The indicator for June decreased by 6.6% to 676 thousand from 724 thousand a month earlier. Analysts ' forecast suggested an increase to 800 thousand.
Support and resistance levels
On the global chart, the price decreases within the framework of working out the "head and shoulders" pattern within the framework of the forex forecast. Technical indicators maintain a stable sell signal: fast EMA on the alligator indicator are below the signal line, and the histogram of the AO oscillator is trading in the sales zone, forming bars with a tendency to increase.
Resistance levels: 1.1845, 1.2000.
Support levels: 1.1752, 1.1620.
Trading Scenarios
Thus, EUR/USD forecast of the euro dollar for July 28-29, 2021, if the asset continues to decline, as well as fixing below the local support at 1.1752, it is possible to open sell positions with a target of 1.1620. The stop loss should be set at 1.1800. Implementation period: 7 days or more.
In the event of a reversal and growth of the asset, as well as consolidation above the local resistance at 1.1845, buy positions with a target around the 1.2000 mark will become relevant. The stop loss should be placed around the 1.1800 mark.