The dollar is extending its fall on Monday, resulting in EUR / USD hitting 1.1764 during European business hours. Currently, the pair is trading in the 1.1740 price zone, barely declining from the mentioned high in several months despite being overbought, but with no technical signs of upward exhaustion, reports Valeria Bednarik, chief analyst at FXStreet.
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“Germany’s IFO business climate report was higher than expected, printing at 90.5 in July, although the assessment of the current situation was slightly worse than anticipated. However, expectations rose to 97.0 from 91.4. The United States released durable goods orders for June, which were mixed. The number of holders was slightly better than expected, as it resulted in 7.3%, although the defense of durable goods increased less than expected, as well as orders without prior transportation. ”
“The technical indicators on the 4-hour chart indicate that the pair is overbought, but in addition to being in extreme readings, there are no signs of upward exhaustion or an upcoming U-turn. Meanwhile, the moving averages continue to move steadily north, well below current levels. ”
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