The EURUSD experienced a dip in the early U.S. session, briefly falling below the support level of 1.1698–1.1703. It dropped to 1.1692 before bouncing back above 1.1703, reaching a high of 1.1723 during the session. Even with this recovery, the momentum has slowed, and the price is starting to decline again. The 1.1698–1.1703 range remains a crucial short-term level. Support in this zone suggests upward potential, but if the price falls below this level, it could lessen its attractiveness to buyers.

Analysis And Updates

For the latest updates and analyses, visit investingLive.com. We are closely monitoring the 1.1698 to 1.1703 range as it is a critical point for the EURUSD. The quick drop to 1.1692 and subsequent rebound indicate that buyers are still active, though their strength is uncertain. For now, staying above this range supports a positive outlook. Recent economic data explains this situation. The U.S. inflation report for July came in higher than expected at 3.1%. Additionally, the Non-Farm Payrolls report for early August revealed an increase of 210,000 jobs. This data suggests a stronger dollar, making it tougher for the EURUSD to rise from this support level. On the flip side, economic signals from the Eurozone have been weak. July’s flash inflation estimate was below expectations at 2.4%. Concerns about slow German industrial output are also hurting the euro. The gap between a strong Federal Reserve and a cautious European Central Bank is putting pressure on the 1.1700 support level.

Trading Strategies

For traders who believe this support will hold, purchasing short-term call options is a straightforward strategy. A trader might buy September calls with a strike price around 1.1750 to take advantage of a potential bounce. This method offers defined risk, limited to the cost of the option. On the other hand, if the price moves below 1.1698 consistently, the bullish scenario weakens significantly. Traders expecting this decline might buy put options with a strike price near 1.1650. This strategy profits from a drop to lower levels not seen since spring of this year. Historically, the 1.1700 level has been significant, acting as both major support and resistance between 2020 and 2021. As the pair stabilizes here, implied volatility on options may reduce temporarily. This could be a chance to buy options at a lower price before a potential breakout. Create your live VT Markets account and start trading now.

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