EUR/USD analysis: struggling around 1.1660, bulls getting the grip

EUR/USD Current price: 1.1659

  • Focus shifts to Tuesday busy macroeconomic calendar in the EU.
  • Better mood among equities' traders helping the dollar, but not against the EUR.

The EUR/USD pair held within a well-limited range this Monday around Friday's close of 1.1668, unable to extend last week's shy recovery amid the absence of a fresh catalyst. All through these last few days, a scarce macroeconomic calendar has left the pair lifeless, albeit the situation is coming to an end this week, starting this Tuesday with German's inflation and ZEW survey, EU preliminary Q3 GDP, and US October PPI figures. German inflation is seen pretty much unchanged from the previous month, while business confidence is seen improving according to the ZEW survey´s forecasts. Growth in the EU is expected to have been of 0.6% in the three months to September, with a positive surprise in here probably being the catalyst the common currency needs to break higher.

Technically the pair has made little progress, although the short-term picture is positive heading into the Asian session, as in the 4 hours chart, the pair holds above a bullish 20 SMA, although unable to clearly surpass a bearish 100 SMA, struggling around it ever since the US session started. In the same chart, the Momentum indicator is trying to bounce from around its mid-line, while the RSI indicator remains directionless around 59. The main resistance from the current level is 1.1690, where the pair found selling interest a couple of times at the beginning of the month, with a break above the level favoring a test of 1.1750. Beyond this last, the upward potential will look a bit a more sustainable, with scope then to test the 1.1800 figure. Below 1.1620, on the other hand, the pair will be at risk of challenging the 1.1553 low seton November 7th.

Support levels: 1.1620 1.1690 1.1550

Resistance levels: 1.1690 1.1720 1.1750

View Live Chart for the EUR/USD


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