The Euro (EUR) inched higher against the US Dollar (USD) on Monday, this caused an increase in the price of EURUSD, bringing it to a total of more than 1.1300. The price of the pair increased after a major economic news released. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias may remain bearish because the pair’s price marked a higher low in the recent upside move.

EUR/USD Technical Analysis

Currently, the pair is being traded around 1.1339, since the price is increasing it is likely to observe a resistance around 1.1369, an immediate horizontal resistance level is the point of reference. Another resistance may come around 1.1418, the confluence of a trend and horizontal resistance lines ahead of 1.1465, the 61.8% Fib level as demonstrated in the given below chart.

Talking about the downside, the price of the pair is likely to support the EURUSD around 1.1240, the trendline support level ahead of 1.0800, the psychological number and then 1.0567, the key horizontal level support is likely to prevent the price from falling further as demonstrated in the given below chart. The technical bias may remain bearish as long as 1.1561, the major horizontal resistance level remains intact.

US ISMI Prices Paid News

In the US, the figure concerning the price index of ISMI remained  72.1 in August, as compared to 73.2 during the month before, up beating the economist expectation which was 70.2. The data is copied from the news released by the US Institute for Supply Management.

It shows the prevailing condition of the manufacturing market of the country. The figure is derived after taking into account various elements of the market such as new orders placed, the estimated rate of production for the future, employment rate, available inventories, and deliveries made so far.

The  ISM figure is considered as a sensitive indicator of the US economy. It is also taken as an indicator of the sentiment of business concerning the inflation that may occur in a due course of time. Generally speaking, a high reading in this regard is taken as a bullish trend for the US Dollar (USD) whereas a low reading suggests a bearish market for the US Dollar (USD).

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, selling the EURUSD around current levels can be a good decision in short to medium term.