EUR/USD Forecast: US growth takes center stage
|The EUR/USD pair recover modestly during the past Asian session, trading a few pips above the 1.0900 mark ahead of the release of US advanced Q3 GDP reading. The pair has traded within a 100 pips range ever since the week started, setting a fresh multi-month low of 1.0850, which implies that the risk remains towards the downside. Still, a disappointing US growth figure can help the common currency extend its recovery, at least short term.
Europe is about to releases is confidence indexes for September, while later on the day, Germany will offer it October preliminary inflation figures, expected slightly above the previous month's figures. But as mentioned before, center stage today is taken by US growth. The economy is expected to have advanced by 2.5% in the three months to September, compared to the previous reading of 1.4%. A reading in line or above expected will likely trigger demand for the US currency, while on contrary, a miss can see the EUR/USD pair advancing beyond its weekly high. Still, gains in the common currency will hardly be sustainable in time
Technically, the pair has made no progress from previous updates, as in the 4 hours chart, the price keeps hovering around a modestly bullish 20 SMA, while technical indicators continue consolidating within neutral territory, reflecting the absence of action around the price. 1.0950, the 23.6% retracement of the latest daily slide is the immediate resistance, followed by 1.1010, the 38.2% retracement of the same decline.
1.0890, on the other hand, is the first support, with a break below it opening doors for a test of the 1.0840 region, en route to 1.0800.
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