EUR/USD: at risk of falling, despite intraday advance

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1913

The EUR/USD pair retains its modest intraday gains ahead of Wall Street's opening, in spite of generally positive US data just released. In the week ending September 16, initial claims reached 259,000, a decrease from the previous week's revised level of 282,000. The 4-week moving average, however was 268,750, the highest level for this average in over a year. Additionally, manufacturing firms reported an improvement in regional manufacturing conditions in September, according to the Philadelphia Fed monthly survey, with the index up for September to 23.8 from previous 18.9, also beating market's expectations of 17.9.

From a technical perspective, the pair has made little progress so far today, up by some 30 pips from its Asian opening. The current recovery is seem as corrective after the pair bottomed at 1.1861 post-Fed's hawkish statement, with the upside further limited by clear sings coming from the ECB, as the institution clearly wants the pair below 1.2000. Short term, the pair presents a neutral-to-bearish stance, as in the 4 hours chart the pair is trapped between horizontal moving averages, also below a marginally bearish 20 SMA, whilst technical indicators remain within bearish territory. An upward extension beyond 1.1930 should favor a minor upward continuation towards the 1.1960 region, en route to 1.2000, where selling interest will likely reject the advance. The pair could turn intraday bearish on a break blow 1.1860, the mentioned low set on Wednesday.

Support levels: 1.1895 1.1860 1.1820

Resistance levels: 1.1930 1.1960 1.2000

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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