Technical Analysis EUR/USD for 8/4/15

EUR/USD managed 1.0988 highs after opening near 1.0950, though has since fallen back to the 1.0945 level, despite the downdraft in yields in the U.S. Greece concerns remain a weight on the euro, as the 20% fall in Greek equities following it re-open from a five-week halt, was a wake-up call to the markets. Friday’s 1.0921 lows provides initial support.

The U.S. ISM July drop to 52.7 from 53.5 in June leaves the ISM back near its 52.8 May level and above the 51.5 two-year low in both March and April.  The less than expected number allowed the Euro to hold steady against the greenback.  Personal spending and income where in line with expectations.

The EUR/USD was unable to recapture the 10-day moving average at 1.0981.  Additional resistance is seen near a downward sloping trend line that connects the highs in June to the highs in July and comes in near 1.1070.  Support is seen near an upward sloping trend line at 1.0840.  Short term momentum has turned negative with the MACD (moving average convergenence divergence index generating a sell signal.