Since the beginning of the month, the euro has been unable to regain its footing against the US dollar. Now, the EUR/USD currency pair has fallen and is on a bearish trend.
It closely tracks the September Michigan Consumer Sentiment Index from the University of Michigan in Germany.
Economists predict that it might register a figure of 72.2 compared to the month before the index of 70.3.
The Michigan Consumer Sentiment Index is a survey of personal consumer confidence in economic activity. It depicts whether consumers are willing to spend money or not. In general, a high reading indicates that the USD will be bullish.
To the upside, the price may pass into a couple of resistance levels, which could push the price back to the downside, as shown in the diagram below.
The EUR/USD currency pair appears to be trading in a highly volatile sideways channel on a technical level. As shown in the image below, the cost has few degrees of assistance that provide lift-up power so that EUR/USD pair can push forward.
In addition, the US Census Bureau will release the building permits figure on September 21, 2021. Economists suggest that it would decrease from 1.63 M to 1.61 M in August Index.
The building permits column displays the number of permits issued for new construction projects. It refers to the flow of business capital (US economic development). The lower the number of permits issued, the lower the value of the dollar.
Since the technical tendency would remain hopeful, opening a long and short position would frequently work smoother.