EUR/USD Price Analysis: Volatile action looks likely despite upbeat German Factory Orders

• EUR/USD has picked some strength near 1.0834 after upbeat German Factory Orders data.
• S&P500 futures have shown decent losses in Asia, portraying negative market sentiment.
• EUR/USD is hovering near the horizontal support of the Descending Triangle pattern plotted from 1.0844.

The EUR/USD pair has found an intermediate support around 1.0834 in the early European session. The shared currency pair has found support after the release of the upbeat German Factory Orders data. Monthly economic data expanded by 6.4% in May against expectations of 1.5%. In April, Factory Orders were contracted by 0.4%. On an annualized basis, Factory Orders have contracted by 4.3%.

The US Dollar Index (DXY) has corrected sharply to near 103.22 after posting a fresh four-day high at 103.40. S&P500 futures have shown decent losses in Asia, portraying negative market sentiment.

Going forward, investors will keep an eye on the United States ISM Services PMI data (June). As per the consensus, Services PMI is seen expanding to 51.0 vs. the former release of 50.3. While New Orders Index is seen declining to 53.3 against the prior release of 56.2.

EUR/USD is hovering near the horizontal support of the Descending Triangle chart pattern formed on a two-hour scale plotted from June 23 low at 1.0844. The downward-sloping trendline of the aforementioned chart pattern is placed from June 22 high at 1.1012.

The major currency pair is trading below the 50-period Exponential Moving Average (EMA) at 1.0885, which indicates that the short-term trend is bearish.

The Relative Strength Index (RSI) (14) has slipped into the bearish range of 20.00-40.00. Downside momentum would activate after a breakdown of the Descending Triangle pattern.

A decisive break below the intraday low at 1.0834 would expose the asset to June 15 low at 1.0804 followed by May 19 low at 1.0760.

On the contrary, a confident break above July 03 high at 1.0934 would send the asset towards June 27 high at 1.0977 and June 22 high at 1.1012.

EUR/USD two-hour chart