EUR/USD Analysis: consolidating near its recent highs
EUR/USD Current Price: 1.1027
- Market sentiment turned sour amid lack of clarity in US-Sino trade talks.
- Germany ZEW Survey expected to show worsening sentiment in the EU.
- EUR/USD holding on higher ground, decline could extend it 1.1000 gives up.
The American Dollar has recovered some ground against most major rivals this Monday, as the enthusiasm that ruled the financial markets last week began fading during the weekend. The EUR/USD pair is hovering around the 1.1020 level pretty much since the day, started, confined to a tight range throughout the day amid a combination of a scarce macroeconomic calendar with uncertainties about the trade issues that dominate markets since last year, and a holiday in the US.
Regarding US-China trade tensions, both countries seem to have reached another truce and to be heading into a deal, although negotiations are set to continue after this “phase one” announced by US President Trump. In the Brexit front, last-minute negotiations continue ahead of the EU summit this week.
This Tuesday, Germany will release the October ZEW Survey, with the Economic Sentiment seen worsening both in the country and the EU. The US macroeconomic calendar will remain scarce as the country also has scheduled the October NY Empire State Manufacturing Index, seen at 1 from the previous 2.
EUR/USD short-term technical outlook
The EUR/USD pair is ending this first trading day of the week with modest losses, although the short-term picture suggests that the decline has been corrective, as the pair held above all of its moving averages, and with the 20 SMA maintaining its bullish slope, advancing above the larger ones. Technical indicators have retreated from overbought readings, the Momentum heading lower just above the 100 level, while the RSI consolidates around 58. The corrective decline could continue if the pair extends its slide below 1.1000, while a recovery would be more likely once above 1.1045, the immediate resistance.
Support levels: 1.1000 1.0960 1.0920
Resistance levels: 1.1045 1.1080 1.1120
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.
