EUR/USD Analysis: higher in range, directionless
|EUR/USD Current price: 1.1065
- US data generally encouraging, market players ignoring it.
- EUR/USD unable to find a clear direction, but risk skewed to the upside.
The EUR/USD pair is trading higher this Monday, pressuring weekly tops, although lacking clear directional strength. The pair recovered after bottoming at 1.1013 post-Fed’s decision, now trading around 1.1070. So far, the weekly high has been set at 1.1086. The market seems to have finished digesting the Fed’s hawkish rate cut, which gave a slight advantage to the greenback. The shared currency, on the other hand, is finding support in a better market mood, and news indicating that France will introduce some fiscal stimulus.
The EU released this Thursday it’s July Current Account, which was up to €20.55B seasonally adjusted, slightly better than anticipated. The US has just unveiled Initial Jobless Claims for the week ended September 13, which came in at 208K better than the 213K expected, although the previous week was upwardly revised by 2,000 to 206K. The Current Account posted a larger-than-anticipated deficit of $128.2B in Q2, while the Philadelphia Fed Manufacturing Survey beat the market’s expectation by printing 12, although below the previous 16.8. Pending of release is the Existing Home Sales report for August.
EUR/USD short-term technical outlook
The EUR/USD pair is offering a neutral-to-positive stance, as, in the 4 hours chart, it is again trading within moving averages, with the 20 and 100 SMA converging below the current level and the 200 SMA at around the mentioned weekly high. Technical indicators in the mentioned chart hold in positive territory, but lack directional strength. The mentioned 200 SMA has contained the post-ECB rally, being an immediate resistance ahead of the 1.1120 price zone. The downside seems well limited by intraday buyers aligned around the 1.1000/10 price zone.
Support levels: 1.1045 1.1005 1.0960
Resistance levels: 1.1085 1.1120 1.1160
View Live chart for the EUR/USD
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