EUR/USD analysis: bulls make another attempt

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1819

The EUR/USD pair surged pass 1.1800 this Monday, settling around 1.1820, its highest in five days, as speculative interest resumed dollar's selling. The pair traded uneventfully during the first half of the day, helped by a scarce macroeconomic calendar, but headlines coming from the US keep feeding risk aversion, sending US equities and bond yields sharply lower with Wall Street's opening, resulting in the greenback falling against all of its major rivals. Furthermore, the only piece of fundamental news coming from the US disappointed, as the Chicago Fed National Activity index for July, came in at -0.5%, below the previous 0.9% and the expected -0.4%. This Tuesday, attention will center on the German ZEW sentiment survey for August, expected below July's readings.

The pair has broken above a descendant trend line coming from this year high of 1.0909 set early August, currently around 1.1780, also a former static resistance, now a key support, as bulls will likely prevail as long as the price remains above it. In the 4 hours chart, the pair has surpassed all of its moving averages, with the 20 SMA gaining upward traction, but still below the 100 SMA. Technical indicators in the mentioned time frame have eased partially from near overbought readings, but given that the price remains near its highs, chances remain towards the upside. August 11th daily high at 1.1846 is the immediate resistance, with a break above it favoring additional gains up to the mentioned 1.1909 yearly high and beyond.

Support levels: 1.1780 1.1745 1.1715

Resistance levels: 1.1846 1.1880 1.1910

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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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