EUR/USD: saved by US PPI miss
|EUR/USD Current price: 1.1740
The EUR/USD eased within range at the beginning of the day, recovering modestly during London trading hours from a daily low of 1.1703, but overall heavy amid lack of appetite for high yielding assets. The absence of relevant macroeconomic data coming from the EU exacerbated the quietness, but US PPI figures finally injected some life to the pair, up ahead of the US opening on disappointing figures. The producer price index edged lower in July according to the official release, with the core figures showing that inflation at factory levels fell 0.1% in the month, and advanced just by 1.8% when compared to July 2016, below previous 1.9% and the expected 2.1%. The dollar edged lower with the news, presenting stronger declines against its safe-haven rivals, but with the EUR/USD pair barely advancing beyond 1.1740, holding below its daily high of 1.1769.
From a technical point of view, the 4 hours chart shows that the price remains below a bearish 20 SMA, this last at 1.1770 reinforcing the strength of the daily high as resistance, whilst technical indicators have barely bounced from their mid-lines, not enough to confirm further gains ahead, yet limiting the downside potential, as poor US inflation brings back to the table a conservative Fed ahead. Anyway, the pair would need to accelerate below 1.1690 to confirm a downward extension for today, with scope to test the 1.1650 region, although further declines beyond this last seem unlikely for today.
Support levels: 1.1690 1.1650 1.1610
Resistance levels: 1.1770 1.1810 1.1850
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