Fundamental Analysis of EURUSD for August 7, 2017

After a long impulsive bullish non-volatile trend, EURUSD has recently shown some bearish intervention after few high-impact positive reports were published on Friday. Recently, the US Average Hourly Earnings report was published at 0.3% in line with expectations, which previously was at 0.2%; Non-Farm Employment Change was published a bit lower at 209k from the previous figure at 231k, but it was better than the expected figure of 182k; and the Unemployment Rate was also published as expected at 4.3% which dropped a little from the previous value of 4.4%. After the high-impact reports came out mostly as expected, the USD was provided with strength to overcome the recent weakness amid bad economic reports. On the EUR side, today German Industrial Production report was published with a negative value at -1.1% from the previous positive value of 1.2%, which was expected to be positive at 0.2%; and Sentix Investor Confidence also showed a slight decrease to 27.7 from the previous figure of 28.3, which was expected to be at 27.8. On the other hand, today FOMC Member Kashkari is going to speak about nations key interest rates and future monetary policies, which is expected to be quite hawkish. As EUR has suffered from weak economic reports today after gaining some strength since the start of the day, so further gains on the USD is expected as of recent high-impact reports effect can be still sensed in the market which can lead to more bearish pressure on the pair for the coming days.

Now let us look at the technical view, the price has already broken below the dynamic support level of 20 EMA with a daily close on Friday, which signals further bearish pressure in this pair with a target towards the 1.1630 support area. As the price is currently seen to create a new higher low on the H4 chart, which is also below the dynamic level; the medium bearish bias is expected to continue further, which might go lower in future if the price rejects the bears at the support area between 1.1500 to 1.1630.

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