FX.co ★ EUR/USD Hot Forecast for 2nd July

• EUR/USD breaks below the previous support around 1.1850.
• Further downside could re-visit 1.1800 in the near term.

EUR/USD is trading below 1.1850, but off the lowest since April. The dollar is gaining ground. Covid concerns are weighing on the euro.

A better-than-forecast results of US NFP could lend extra support to the dollar and therefore accelerate losses in EUR/USD. Against this, there is an interim support in the 1.1800 neighbourhood ahead of the Fibo level at 1.1762.

The currency pair continues suffering from downside momentum on the four-hour chart, trading below the 50, 100 and 200 simple moving averages. However, the Relative Strength Index (RSI) is nearing the 30 level once again – thus being close to oversold conditions.

Some support is at the daily bottom of 1.1835, which is also the lowest since June. It is followed by 1.1820, a resistance line from April. Further down, 1.1780 and 1.1740 await the pair. Resistance is at 1.1880, followed by 1.1910, and then by 1.1950 and 1.1950 – all capped EUR/USD on its way down in the past week.