EUR/USD Analysis: bears retain control

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1311

Lack of macroeconomic news keeping EUR/USD ranging around 1.1300.
European equities up, leading to a positive Wall Street´s opening.

The EUR/USD pair briefly pierced the 1.1300 level this Monday, barely holding above it in thin trading. The greenback is firmer against most rivals, as concerns related to the global economic slowdown sends speculative interest away from other currencies, particularly European ones. An exception is the CAD, which retains part of the strength triggered by solid employment data, also helped by a modest bounce in oil prices. Back to the shared currency, there were no relevant macroeconomic releases, but the downward revisions to this year's growth forecasts by several different organisms, keep it under pressure. The US has nothing to offer today in the data front. European indexes advance, hinting a positive start to Wall Street, while government bond yields remain subdued, amid increased demand for safety.

The EUR/USD pair hovers around 1.1310, bearish despite oversold, given that, in the 4 hours chart, it keeps developing below a bearish 20 SMA, which extends its slide below the larger ones, while technical indicators present neutral-to-bearish slopes at oversold levels. The daily low was set at 1.1296, yet it will take a break below 1.1280 to open doors for further declines in the last session of the day. The bearish case could ease on a recovery above 1.1330, the daily high, but the pair is far from turning bullish, as it would take an extension past the 1.1400 figure, quite unlikely for today.

Support levels: 1.1280 1.1245 1.1210

Resistance levels: 1.1330 1.1375 1.1400

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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