EUR/USD analysis: struggling for direction amid scarce calendar

EUR/USD Current price: 1.1594

  • US minor releases resulted mixed, market players not impressed.
  • Political headlines are the only reason why the pair could leave its range.

The EUR/USD pair continues trading lifeless around the 1.1600 figure, with the high for the day is so far 1.1618 and the low 1.1575. The pair remains mute, even despite the release of some US data, which by the way failed to impress. According to the official release, Producer Prices were flat in July, and up 3.3% from a year earlier. The core readings that exclude volatile energy and food prices were below the market's expectations and the previous month readings, advancing a modest 0.1% MoM and by 2.7% YoY. Weekly unemployment claims for the week ended July 30 were of 213K, below a previous revised 219K and better than the 220K expected, although the 4-week average rose to 1.755M from the previous 1.726M. There were no releases in Europe, and still pending are US Wholesales Inventories for June and a speech from Fed's Evans.

In the meantime, European equities trade marginally lower, while US indexes are poised to open with a soft tone. US Treasury yields retreat, ahead of Friday's inflation figures and after a good, but unimpressive record auction Wednesday. Little extra could be expected for today, beyond fresh political headlines that may come out of the bloom.

Technically, the 4 hours chart shows that the pair met once again sellers on an approach to the daily descendant trend line broken last week, but also that the price holds a couple of pips above its 20 SMA, with slides below it finding buyers. Indicators keep retreating with the Momentum pressuring its 100 level and the RSI already in negative territory, somehow leaning the scale toward the downside. The immediate support is the 1.1550 region, with a break below it unlikely for the upcoming session.  

Support levels: 1.1550 1.1510 1.1480

Resistance levels: 1.1625 1.1660 1.1690

View Live chart for the EUR/USD

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