EUR/USD Current price: 1.1852
The EUR/USD pair was confined to a tight intraday range right below the 1.1900 level for most of the day, easing modestly during early London session, as a plummeting EUR/GBP on BOE's announcement, weighed on the common currency. However, the pair remained above its early daily low of 1.1865, ahead of the release of US data for August, which surprised to the upside. According to the official figures, inflation in the month rose by 0.4% from previous 0.1% and the expected 0.3%, while yearly basis, it jumped from 1.7% in July, to 1.9%. Core readings also surpassed estimates, matching previous 1.7% YoY. Additionally, weekly unemployment claims for the week ending September 8th came in better-than-expected, down to 284K from previous 298K and the expected 300K.
The greenback got a boost from the headlines, sending the EUR/USD pair down to 1.1837 initially, its lowest for the week and not far from 1.1822 last week low. The short term picture is clearly bearish, with the 4 hours chart showing that the pair is attempting to break below its 200 SMA after already breaching the shorter ones, with the 20 SMA gaining downward momentum well above the current level. Technical indicators in the mentioned chart have resumed their declines and approach oversold levels, still slightly above previous weekly lows. A long term daily ascendant coming from April 4th low at 1.0603, stands now around 1.1800. A break below this last should fuel the decline, with the pair then poised to extend its decline towards 1.1730 a strong static support area.
Support levels: 1.1825 1.1800 1.1770
Resistance levels: 1.1890 1.1930 1.1965
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