EUR/USD Analysis: mute below 1.1110

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1104

FOMC Meeting’s Minutes have little chances of triggering big market’ movements.
EUR/USD could extend its upward corrective movement toward 1.1150.

The EUR/USD pair is trading at around 1.1100, holding on to modest daily gains, underpinned by the positive tone of equities and a bounce in government debt yields. The financial world, however, is still watching the global economic downturn, trade tensions between the US and China, and Brexit woes. The thin intraday range is due to the lack of the relevant European data released this Wednesday, and a wait-and-see stance ahead of the FOMC Meeting’s Minutes, to be out later in the American session, and the Jackson Hole Symposium that will include speeches from several central bankers. The US will also release July Existing Home Sales, seen up monthly basis by 2.5%.

The FOMC Meeting’s Minutes usually shed some light over the future of monetary policy in the US, but are released a couple of weeks after the meeting. Ever since the meeting took place, the trade war escalated, relevant as US policymakers are more concerned about external developments than about local ones.

EUR/USD short-term technical outlook

The EUR/USD pair is technically neutral, still below 1.1110, a major Fibonacci resistance. In the 4 hours chart, the pair is developing above a flat 20 SMA, while technical indicators hover around their midlines, lacking clear directional strength. Seems unlikely the pair will be able to gather directional momentum in the current scenario. The bearish case will be firmer on a break below 1.1065, while a recovery past 1.1110 could see the pair extending its intraday advance up to 1.1150.

Support levels: 1.1065 1.1025 1.0980

Resistance levels: 1.1110 1.1150 1.1195

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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