EUR/USD analysis: consolidative phase continues

Valeria Bednarik FXStreet

EUR/USD Current price: 1.2258

The EUR/USD pair can't attract investors ahead of the ECB meeting.
US minor data to be released today to have little effect on the pair.

The EUR/USD pair continues trading uneventfully and within a well limited range ahead of Wall Street's opening, unable to find direction since the end of the last week, as investors turned cautious ahead of the upcoming ECB's monetary policy meeting this Thursday. The pair is unchanged daily basis for the second day in-a-row, with the ongoing quietness exacerbated by a scarce macroeconomic calendar. Earlier today, Germany released its ZEW survey which showed that economic sentiment continues to improve in the country and the Union, with the index coming at 95.2 and 31.8 respectively, surpassing market's forecasts. The figures were just enough to push the pair off its daily low of 1.2222. The greenback weakens ahead of the release of the Richmond Fed Manufacturing Index and EU Consumer Confidence, while Wall Street is expected to open marginally higher, after a strong rally in European indexes.

In the meantime, the short-term technical picture is still neutral, given that in the 4 hours chart, the pair continues moving back and forth around a horizontal 20 SMA, while technical indicators have now turned marginally higher but are still stuck to their mid-lines. Resistances from here come at 1.2280 and 1.2322, while relevant supports come at 1.2200 and 1.2165, with a break of the extremes unlikely for today.

Support levels: 1.2230 1.2200 1.2165

Resistance levels: 1.2280 1.2320 1.2355

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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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