EUR/USD shuffling back towards 1.1390, sellers remain steady despite early moves
|- A quiet start to the day as the Euro catches a small ride.
- broader markets are awaiting the return of further volumes, threatening to keep EUR/USD constrained for now.
With little momentum driving broader markets, EUR/USD has caught steady lift in early Thursday action, rising into 1.1380 from Wednesday's low of 1.1343. The Euro knocked lower against the US Dollar yesterday as markets recovered their footing from the early week's declines, and the US Dollar is carving out recent losses as the Euro falters.
The economic calendar is clear for Thursday, with no European data slated to drop for the day, leaving the Fiber to struggle against the overall market current which remains thin with most participants out for holidays, leaving the major EUR/USD pair to grapple with thinned-volumes. Next week is expected to open much the same, with a holiday on the offering for the first two days of the week. Italy's budget woes are far from over, and even France is beginning to toe the line somewhat, with European Commission leaders warning that if they accept France's budget deficit, it would be a once-and-only-once event.
Meanwhile, Brexit remains a key event for the European continent as the two sides barrel towards the final Brexit date slated for March 29th of 2019, and many active watchers are growing increasingly irritated as UK Prime Minister Theresa May continues to play keep-away with her current Brexit withdrawal proposal which still awaits a parliamentary vote, which PM May recently cancelled at the last-minute and is now running down the clock in the hopes of forcing naysayers to agree to her plan, which has failed to garner much support from either side of the Brexit line.
EUR/USD levels to watch
As holiday markets begin to grind their way back to something approaching normal, the Fiber remains exposed to bearish technicals, according to FXStreet's own Valeria Bednarik:
The 4 hours chart shows that the pair is finding short-term support around its 200 SMA, around 1.1360, also the base of the weekly range, while a mildly bearish 20 SMA caps the upside around 1.1410. Technical indicators hold below their midlines without directional strength, all of which left a neutral stance. The pair also holds near its yearly low and below the 23.6% retracement of its yearly slump, this last at 1.1545, which, long-term, keeps the risk skewed to the downside. The pair is heading into the Asian opening near the base of the mentioned weekly range, with the greenback having chances of recovering further amid the improved mood among equities' traders, that anyway, could be temporal.
Support levels: 1.1360 1.1315 1.1280
Resistance levels: 1.1440 1.1480 1.1510
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