EUR/USD Current price: 1.1226
The EUR/USD closed Friday at 1.1226, range bound for a fourth consecutive week. Since late August, the pair has been trading within a well-limited 200 pips' range, with uncertainty ahead of the US Federal Reserve decision sending investors to the side-lines. Still, the Central Bank failed to set the tone for the pair, offering a mixed tone, as while it left doors open for a December hike, it also showed no rush in tightening rates. Things in Europe were not helping the bullish case for the common currency, as September preliminary Markit PMIs showed that the services sector activity fell to a 21-month low. Manufacturing on the other hand, improved, both for the EU and Germany, but that was not enough to outpace services' reading, resulting in the EU Markit composite PMI falling to a 20 months low of 52.6 and the German reading falling to 52.7, the lowest in over a year.
For this upcoming week, the US will once again take center stage, with the release of PCE inflation, Durable Goods Orders, the final revision for the Q2 GDP figure, and at least nine FOMC members scheduled to speak.
The technical picture is neutral, as long as the price holds above 1.1120, but below 1.1366, August high. The pair continues developing within two large trend lines, with the longest being the ascendant one, coming from November 2015 low of 1.0505, and around 1.1080/90 for the upcoming days. As for the descendant trend line, it began at 1.1615, May 2016 high, and should offer some resistance if reached, currently around 1.1280. In the daily chart the price is above the moving averages, but the indicators remain all together and without directional strength, reflecting the absence of direction, while technical indicators hold within neutral territory. In the 4 hours chart, the pair presents a moderate bullish tone, as the price is above its moving averages, and technical indicators in positive territory, although losing upward strength.
Support levels: 1.1190 1.1160 1.1120
Resistance levels: 1.1250 1.1280 1.1335
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