EUR/USD Forecast: Quiet consolidation ahead of critical events
|EUR/USD Current Price: 1.1070
- Trade tensions and central banks’ upcoming decisions keep investors in cautious mode.
- German trade surplus surpassed the market’s expectations in October, up to €20.6B.
- EUR/USD reversing Friday’s losses scope to retest the 1.1100 price zone.
The EUR/USD pair is trading marginally higher this Monday, with the greenback shedding some of the ground gained on Friday. The market’s mood is cautious ahead of several critical events that will take place this week, starting with the US Federal Reserve´s and the ECB´s monetary policy meetings.
Also, the UK will head to the polls on Thursday, and the outcome should define the future of Brexit. Finally, the US has planned the next round of tariffs on Chinese goods for December 15, which means that, if a trade deal is not achieved ahead of it, tensions are set to escalate and spur risk-aversion.
The week started in slow motion in the data front, as Germany released its October Trade Balance, which posted a trade surplus of €20.6B. Imports in the month were unchanged against a 0.1% decline expected, while exports increased by 1.2%, much better than the -0.3% forecast. The US won’t release macroeconomic data this Monday.
EUR/USD short-term technical outlook
The EUR/USD pair is trading a few pips above a Fibonacci level at 1.1065, the 38.2% retracement of its October rally. The short-term picture is neutral, as, in the 4-hour chart, the pair is trading within directionless moving averages, as technical indicators head nowhere around their midlines. The upside seems limited by sellers aligned ahead of the 1.1100 figure, while buyers will likely defend the 1.1030 level, the 50% retracement of the mentioned rally.
Support levels: 1.1030 1.0985 1.0940
Resistance levels: 1.1090 1.1120 1.1150
View Live chart for the EUR/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.