EUR/USD Analysis: modest uptick doesn't change the technical picture
|EUR/USD Current price: 1.1591
- US PPI unexpectedly fell in August, putting a temporal halt on dollar's demand.
- EUR/USD ranging ahead of ECB's monetary policy meeting next Thursday.
The EUR/USD pair trades lower in range, a handful of pips below the 1.1600 figure, mute for the day as investors are now waiting for Thursday's ECB monetary policy decision. The pair spiked to 1.1596 following news that an Italian 5-Star source reported tensions over the budget, but clarified there are no threats to remove Economy Minister Tria. In the data front, EU figures disappointed, as July Industrial Production decreased by more than expected, falling monthly basis 0.8% vs. the forecasted -0.5%. The YoY figure resulted at -0.1% well below the market's expectations of 1.0%.
The US just released August PPI data, showing that the core Producer Price Index decreased 0.1% in the month, missing the market's forecast of a 0.2% advance. The yearly reading came in at 2.3%, also below the market's forecast and the previous 2.7%. The news put some mild pressure on the greenback ahead of Wall Street's opening, which is poised to start the day slightly higher when compared to Tuesday's close.
From a technical point of view, the pair retains the neutral stance seen on the previous updates as it remains trapped within a congestion of directionless moving averages in the 4 hours chart. Indicators in the mentioned time frame are picking up but the RSI remains around its mid-line and below its previous daily high, offsetting the positive tone of the Momentum. Seems unlikely the pair could leave today its range, with spikes toward the 1.1620/40 region probably resulting in retracements back to the current area on the back of profit-taking.
Support levels: 1.1570 1.1530 1.1500
Resistance levels: 1.1625 1.1660 1.1700
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