EUR/USD analysis: dollar's weakness preventing EUR's slide
|EUR/USD Current price: 1.1740
- US Durable Goods Orders and FOMC's meeting Minutes to take center stage.
- Despite dollar's demand receded across the board, the common currency remained flat.
Demand for the greenback receded this Tuesday but didn't help much the common currency. The EUR/USD pair ended the day little changed around 1.1740, stuck around the 38.2% retracement of its latest bullish run, amid de absence of a fresh catalyst to drive the pair. There were no fresh news on German's situation after coalition talks failed on Sunday, but the issue kept bulls away from the pair. There was a notable decrease in volume across the FX board, partially due to a scarce calendar, but also due to the upcoming Thanksgiving holiday this Thursday.
There were no macroeconomic headlines coming from the EU, but the US released the Chicago Fed National Activity index, up in October to 0.65 from 0.36 in September, another regional index that beats expectations. Also, Existing Home Sales in the same month rose by 2.0%, to their strongest pace since earlier this summer, according to official data, to a seasonally adjusted annual rate of 5.48 million. Things will be a bit more interesting this Wednesday, with US Durable Goods Orders and the Michigan consumer sentiment index, ahead of FOMC´s meeting Minutes.
Technically, the pair posted a lower low and a lower high daily basis, indicating that the risk remains towards the downside, despite the flat daily close. The fact that the pair remains unable to surpass its 100 DMA adds to the negative sentiment, although in the longer run, a steeper decline is not yet clear. Shorter term, and according to the 4 hours chart, the price settled below a bearish 20 SMA, but held above a horizontal 200 SMA, as technical indicators maintain a neutral stance within bearish territory, barely turning higher, but with limited directional strength. The pair needs to settle above 1.1745, the mentioned Fibonacci level, to be able to extend its recovery, while further slides should be expected below 1.1705, the next Fibonacci support.
Support levels: 1.1705 1.1670 1.1630
Resistance levels: 1.1745 1.1790 1.1830
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.