EUR/USD analysis: lifeless at weekly lows

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1720

Fed and ECB meeting's Minutes to shed some light.
Scarce macroeconomic calendar keeping investors clueless.

The EUR/USD pair trades lower in range, with currencies showing little life of their own, beyond some sporadic movements here and there. The common currency attempted a recovery after London's opening, peaking against the greenback at 1.1757 for the day but quickly retreated. Political woes, with German trying to form a government and the US struggling with the tax reform, are leaving investors clueless at the time being, with the absence of relevant macroeconomic data exacerbating the ongoing uncertainty. Later this week, both the ECB and the Fed, will release the Minutes of their latest meetings, which may shed some light on future decisions but chances are limited. For today, the US is set to release October Existing Home Sales figures.

From a technical point of view, the pair heads into the US session biased lower according to intraday readings, after breaking late Monday below the 38.2% retracement of the latest daily 300 pips' advance, at 1.1745, the immediate resistance. In the 4 hours chart, the pair is developing below a bearish 20 SMA, which now converges with the mentioned daily high, as technical indicators head lower within negative territory, albeit with limited momentum. An immediate support comes at 1.1705, the 50% retracement of the same rally, with a break below it exposing the 1.1660 region.

Support levels: 1.1705 1.1660 1.1620

Resistance levels: 1.1745 1.1790 1.1830

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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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