EUR/USD: above Friday's high, bullish despite limited range

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1774

The EUR/USD pair trades marginally higher in a dull Monday and ahead of the US opening, with the greenback under modest pressure. The absence of macroeconomic releases, and with investors looking for clues coming from central bankers later this week, exacerbate the quietness at the beginning of the day. The Bundesbank monthly report released today indicates that German growth may exceed their latest forecast, while also sees inflation rising in the country, although it aligned with the ECB, adding that a stronger common currency may dampened price pressures. In the US, the Chicago Fed National Activity index for July, came in at -0.5%, below the previous 0.9% and the expected -0.4%, further weighing on the dollar.

From a technical point of view, the 4 hours chart favors a new leg higher, although the pair needs to clearly advance the 1.1820 static resistance, to gain a firmer upward momentum. In the mentioned chart, the price remains trapped between horizontals 20 and 100 SMAs, whilst technical indicators advanced within positive territory to fresh daily highs. A daily descendant trend line coming from this year high of 1.0909 offers an immediate resistance at 1.1790, with a break above it being a first sign of a bullish extension for this Monday.

Support levels: 1.1735 1.1690 1.1660

Resistance levels: 1.1790 1.1820 11860

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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