EUR/USD analysis: investors still waiting for clearer clues
EUR/USD Current price: 1.1223
The EUR/USD pair fell down to 1.1190 this Tuesday, as the greenback traded firmly higher at the beginning of the US session, although it trimmed gains after FED's Fischer said that he doesn't like low interest rates, but that he "don't want to raise the interest rate too much," while he added that he doesn't know when rates should rise. It was quite a volatile day, with sentiment improving during the Asian session, as Hillary Clinton was seen "winning" the first US Presidential debate, but deteriorating on plummeting bank equities during London trading hours.
The greenback found additional intraday support on better-than-expected macroeconomic releases, as the Conference BC Confidence Index, improved in September, now standing at 104.1, up from 101.8 in August. Also, the September preliminary Markit Services and Composite PMIs showed that the rate of expansion in business activity picked up for the first time in three months, but remained relatively modest. The Services PMI rose to 51.9 in September from the previous month’s final reading of 51.0, while the seasonally adjusted Markit Flash Composite PMI Output Index ticked up to 52.0 in September from 51.5 in August.
The pair remains in negative territory daily basis, although the neutral stance persists. Technically, and according to the 4 hours chart, there are no clear directional clues, with the price now recovering around a congestion of horizontal moving averages, and technical indicators now turning higher around their mid-lines. The daily descendant trend line that has been containing advances since mid August stands now around 1.1270, yet the price still needs to clearly extend beyond the 1.1280 to gain some bullish traction, whilst below the mentioned daily low, the decline can extend down to 1.1120.
Support levels: 1.1190 1.1160 1.1120
Resistance levels: 1.1280 1.1335 1.1365
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.
