EURUSD lost traction and fell below 1.1000.
EURUSD lost traction and fell below 1.1000. The technical picture indicates that the pair has additional negative potential. The negative move in risk sentiment benefits the US Dollar (USD). And weighs on the pair on Tuesday. US stock index futures are trading in the red. While the Euro Stocks 50 Index is down 0.4%. After the open, reflecting the gloomy market atmosphere.
The ISM will be released in the second half of the day. Investors will be watching the Manufacturing PMI and JOLTS Job Openings data from the United States intently.
The headline PMI is likely to remain below 50 in July, while the Employment Index component is expected to fall to 48 from 48.1 in June. If the Manufacturing PMI or the Employment Index remain above 50, the USD may continue to outperform its competitors.
Meanwhile, JOLTS Job Openings are projected to fall to 9.6 million in June. Markets are still unsure if the Federal Reserve (Fed) will hike interest rates again later this year. A reading of 9 million or less might restore dovish Fed bets and cause the EURUSD to rise.
Technical Analysis
On the four-hour chart, EURUSD fell below 1.1000, where the Fibonacci 61.8% retracement of the most recent slump intersects with the 200-period Simple Moving Average (SMA).
As long as this level serves as resistance, sellers may maintain control and the pair may fall to 1.0950 (static level), 1.0900 (psychological level), and 1.0840 (static level, beginning point of the upswing).
A daily close above 1.1000 could pave the door for a longer-term resurgence. In that case, resistances at 1.1050 (Fibonacci 50% retracement of the latest upswing, 50-period SMA) and 1.1100 (Fibonacci 38.2% retracement, 100-period SMA) might be visible.
