The EUR/USD pair advanced up to 1.1410 with the European opening, boosted by a decline in local share markets, as worldwide stocks fell following worse-than-expected Chinese trade data, and the ongoing dollar's negative tone.
The release of German CPI did little to affect the pair, as inflation remained unchanged in September this year, compared to September 2014, down to 0.0%. The pair however retraced some 30 pips, following poor inflation data in the UK, down to the 1.1380 as the dollar strengthened short term.
The release of the German ZEW survey sent the pair further lower, as according to October data, economic sentiment fell down 1.9 from previous 12.1, whilst the assessment of the current situation resulted at 55.2 from previous 67.5. The EU economic sentiment, according to the same survey, shrank to 30.1 matching expectations. With not much relevant data scheduled in the US, the pair will likely trade on sentiment.
View the Live chart of the EUR/USD
Currently around 1.1370, the 4 hours chart shows that the price is still well above its 20 SMA that presents a strong bullish tone and offers an immediate support around 1.1340, whilst the technical indicators lack directional strength near overbought levels. With no upward momentum but far from signaling an upcoming downward move, the pair needs to recover above the daily high to be able to extend its rally up to 1.1460 a major static resistance area.
Below the 1.1340 level however, the pair can extend its decline down to the 1.1290 region, where buying interest should surge to keep the bullish trend alive. A break below it, on the other hand, should lead to a test of the 1.1245 price zone.
Latest updates on the EUR/USD Forecast
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