EUR/USD consolidates above 1.1650, remains near last week highs
|- EUR/USD holds in range, near last week highs.
- Data ahead: German inflation, ZEW survey, EZ GDP and US PPI.
The EUR/USD pair moved on Monday within Friday’s range. The pair bottomed at 1.1636 and then rebounded. When it approached Friday’s high it lost strength. The euro peaked at 1.1674 and at the moment of writing was at 1.1660/65, around Friday’s close.
Price action across the board remained limited on Monday. No relevant economic data was released. The EUR/USD managed to erase losses despite dollar’s strength. It received some support from the rally in EUR/GBP.
Volatility is likely to rise on Tuesday after a quiet day and also amid relevant economic reports. During the European session, German inflation, the ZEW Survey, Eurozone GDP growth and Industrial Production data is due. While in the US, economic number to be released on Tuesday include the producer price index for October ahead of the CPI and retails sales report on Wednesday.
EUR/USD Technical outlook
“Although the short-term picture is positive heading into the Asian session, as in the 4 hours chart, the pair holds above a bullish 20 SMA, although unable to clearly surpass a bearish 100 SMA, struggling around it ever since the US session started. In the same chart, the Momentum indicator is trying to bounce from around its mid-line, while the RSI indicator remains directionless around 59”, said Valeria Bednarik, Chief Analyst at FXStreet.
The main resistance from the current level is 1.1690, notes Bednarik, where the pair found selling interest a couple of times at the beginning of the month, with a break above the level favoring a test of 1.1750. “Beyond this last, the upward potential will look a bit a more sustainable, with scope then to test the 1.1800 figure. Below 1.1620, on the other hand, the pair will be at risk of challenging the 1.1553 low seen on November 7th”, she explains.
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