EUR/USD Forecast: lacking directional strength but near 1.1600
|EUR/USD Current price: 1.1586
- ZEW Survey expected to show that economic sentiment deteriorated further in October.
- US calendar with little of note to offer today, equities will again lead the way.
The EUR/USD pair trades within Monday's range, just below the 1.1600 level as the dollar continues trading softly against its major rivals. The negative sentiment that dominated the weekly opening has receded, with equities trading marginally higher, and base metals retaining their gains. An extra boost for European currencies came from a header with comments from German EU Minister Roth, who said: "it's clear that we will get a Brexit deal," adding, however, that the EU must be protected and that they can't rule out the chance of a no-deal Brexit.
UP next is the German ZEW survey for October, expected to show that the Economic Sentiment deteriorated further both, in the country and the EU. The Union will also publish the August Trade Balance. Later in the day, the US will offer September Industrial Production and Capacity Utilization, among other minor reports.
The 4 hours chart shows that the pair continues trading around the 38.2% retracement of its latest daily slump, trapped within a tight range of moving averages, as the 20 SMA advances in the 1.1570 region, the pair is now stuck around the 100 SMA, while the 200 SMA hovers some 20 pips above the current level, all of them reflecting the absence of directional strength. Technical indicators in the mentioned chart are trying to recover ground, but around their midlines, falling short of confirming a bullish extension. The main resistance is the 1.1620 price zone where the pair has the 50% retracement of the mentioned decline, while only below 1.1530, the low set last Friday, the pair will turn bearish.
Support levels: 1.1575 1.1530 1.1500
Resistance levels: 1.1620 1.1660 1.1700
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