EUR/USD Analysis: recovering below 1.1800, waiting for the Fed
|EUR/USD Current price: 1.1775
- Unless a political header triggers some action, the pair will likely keep ranging ahead of Fed's decision.
- US Consumer Confidence seen decreasing to 132.2 from the previous 133.4.
The EUR/USD pair regained its poise, trimming most of Monday's US session losses amid broad dollar's weakness, but holds below the 1.1800 level. The common currency lost some upward strength after ECB's Praet tried to cool down Draghi's words, saying that in his Monday's speech, there was nothing new, but the pair remains afloat on prevalent dollar's weakness. Germany released August the Wholesale Sales Price Index, up 0.3% MoM and by 3.8% YoY. The pair trades around 1.1780 with European equities and commodities marginally higher daily basis, as speculative interest waits for the Fed's monetary policy outcome this Wednesday. For today, the US has scheduled to release the S&P Home Price Index, the Richmond Fed Manufacturing Index, and more relevant the CB Consumer Confidence estimate, expected at 132.2 from the previous 133.4.
In the meantime, the 4 hours chart shows that the price recovered above a bullish 20 SMA after spending the first half of the day below it, while technical indicators have recovered, both now advancing within positive levels but with limited strength and far below the weekly highs, leaning the scale toward the upside, without confirming it. The pair would need a strong catalyst to break higher, most likely coming from the political front. If such headlines don't come, the pair will probably continue trading in familiar levels, ahead of Fed's decision.
Support levels: 1.1735 1.1685 1.1640
Resistance levels: 1.1790 1.1820 1.1850
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