EUR/USD Current Price: 1.1027
- Risk-related sentiment continues to dominate the FX board.
- A scarce macroeconomic calendar keeps most major pairs within familiar levels.
- EUR/USD technically neutral, waiting for fresh trade-related headlines.
The EUR/USD pair gapped lower at the weekly opening, although it held above the 1.1000 figure. Weekend news have affected the market’s sentiment negatively, with the greenback and safe-haven assets making the most out of it.
The US and China have set an agreement in principle by the end of last week, with US President Trump calling it “phase 1” of a trade deal. The announcement initially triggered the market’s optimism, which later faded on the back of the lack of details and uncertainty on which tariffs are still on the table and when those will be applied. Also, Brexit-related news weighed on the market’s mood, after UK PM Boris Johnson said during the weekend that there’s still a long way to go toward a deal.
The EU released August Industrial Production, which was up by 0.4% when compared to the previous month, although down by 2.8% when compared to a year earlier. The US celebrates Columbus Day, and no macroeconomic data will be released.
EUR/USD short-term technical outlook
The EUR/USD pair is trading in a tight range far from indicating additional declines ahead in its 4 hours chart, as, despite technical indicators continue to ease from overbought readings, the price holds above all of its moving averages, and with the 20 SMA maintaining its bullish slope after crossing above the larger ones. The downside is limited by the 1.1000 psychological threshold, while the pair could turn bullish on an extension beyond 1.1045.
Support levels: 1.1000 1.0960 1.0920
Resistance levels: 1.1045 1.1080 1.1120
View Live chart for the EUR/USD
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