EUR/USD: disappointing US data saves the day for the EUR
EUR/USD Current price: 1.1860
The EUR/USD pair trimmed most of its Thursday's losses and nears its weekly high ahead of Wall Street's opening, as US inflation and sales data were a big miss. According to the official releases, consumer prices rose by 0.5% in September on a monthly basis, and by 1.7% when compared to a year earlier, pretty much in line with previous readings, but below market's expectations. Retail Sales were up in the same month by 1.0%, but the core reading, the control group, barely matched forecast, up 0.4%. While the numbers are not enough to deviate the Fed out of the tightening path, they surely fell short of indicating a faster pace of growth in the key economic indicators that can spook the ghosts of a slower rate hike pace ahead.
The EUR/USD pair briefly fell to a daily low of 1.1805, but quickly turned north, hovering a handful of pips below is weekly high at the time being, and short term bullish according to the 4 hours chart, as the price is above its 20 and 100 SMAs, whilst technical indicators are regaining the upside within positive territory. To the upside, however, the pair was rejected by selling interest around the 200 SMA which also capped the upside earlier this week. Still pending of release is the preliminary US Michigan consumer sentiment index for October, expected at 59.0 from previous 95.1, but seems unlikely the number can change dollars course at this point. Beyond 1.1890 the pair has room to extend its gains up to 1.1930, with a weekly close near this last opening doors for an upward extension up to 1.2000 for the next one.
Support levels: 1.1825 1.1790 1.1750
Resistance levels: 1.1890 1.1930 1.1965
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.
