EUR/USD analysis: wait-and-see mode, 1.1800 caps
|EUR/USD Current price: 1.1793
- Potential of further gains remain limited with sellers around 1.1800.
- US inflation and central bank announcement awaited.
The EUR/USD pair spent the day close to, but below the 1.1800 level, with a spike up to 1.1811 early US session being quickly reverted. The FX market remained on hold this Monday amid a scarce macroeconomic calendar and multiple first-tier events ahead in the week, including the Fed and the ECB monetary policy meetings, and US November inflation figures. In the meantime, the only news of weight this Monday was a frustrated terror attack in Manhattan that spurred limited risk aversion.
The pair has been unable to surpass the 61.8% retracement of the late November bullish run around the 1.1800 figure, presenting a neutral stance in the 4 hours chart, as technical indicators have completely corrected oversold conditions, but lost upward strength once reaching their mid-lines, suggesting the corrective movement may well be over. In the same chart, the price stands a few pips above a still bearish 20 SMA, but between horizontal larger ones, a sign of the current lack of directional strength. The pair would need to advance beyond 1.1830 to look a bit more positive, while the key support is the 1.1710/20 price zone, where the pair bottomed late November and last week.
Support levels: 1.1750 1.1710 1.1660
Resistance levels: 1.1800 1.1830 1.1860
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