EUR/USD Analysis: Lower in range, bullish only above 1.1180

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1118

EU preliminary October Consumer Confidence foreseen at -6.7 from -6.5 previously.
EUR/USD with scope to extend its bearish corrective movement toward 1.1040/60.

The EUR/USD pair has reached a fresh weekly low of 1.1105 during European trading hours, bouncing just modestly from the level ahead of Wall Street’s opening. Trading remains dull across the FX board, amid a scarce macroeconomic calendar and Brexit-related uncertainty. UK PM Johnson suffered another set-back Tuesday in Parliament, as MPs voted against Johnson’s timetable to discuss the Withdrawal Bill, which would have speed up the approval to leave the EU by October 31. The market is now wondering whether it will be a short delay or a long one and if elections are in the middle.

The lack of clear clues is keeping investors in cautious mode, with equities mixed and seesawing around their opening levels and government debt yields ticking modestly lower. During the upcoming hours, the EU will release the preliminary estimate of October Consumer Confidence, foreseen at -6.7 from a previous -6.5.

EUR/USD short-term technical outlook

The EUR/USD pair has recovered from the 23.6% retracement of its latest bullish run, measured between 1.0878 and 1.1179. The upside potential seems limited, according to the 4-hour chart, as its holding below a flat 20 SMA, while technical indicators remain within negative levels, lacking directional strength. Bulls could become more confident if the advance extends beyond 1.1150, but it seems an unlikely scenario for this Wednesday.

Support levels: 1.1105 1.1080 1.1040

Resistance levels: 1.1150 1.1180 1.1210

View Live chart for the EUR/USD

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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