EUR/USD Forecast: Consolidating around 1.1800

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1797

European data failed to impress, putting a cap to EUR/USD.
Dovish words from Fed’s Powell put pressure on the greenback.
EUR/USD consolidating gains near a critical Fibonacci resistance.

The EUR/USD pair traded as high as 1.1809 and currently hovers around the 1.1800 figure, consolidating gains. Majors are quiet amid a holiday in the UK, keeping volumes at their lows. Elsewhere, activity is also limited, with European indexes posting modest intraday gains and US futures holding around Friday’s closing levels. Market participants are still digesting US Federal Reserve chief Powell dovish words, as the head of the central bank put at doubt tapering this year.

On the data front, the EU published the August Economic Sentiment Indicator, which printed at 117.5, missing the expected 117.9. Germany released the preliminary estimate of the August Consumer Price Index, which printed at 0% MoM and 3.9% YoY. The US will publish July Pending Home Sales and the Dallas Fed Manufacturing Business Index.

EUR/USD short-term technical outlook

The EUR/USD pair trades near the 61.8% retracement of its latest daily slide at around 1.1820, the immediate resistance level. The 4-hour chart shows that the risk is skewed to the upside, as the pair trades above all of its moving averages, with the 20 SMA advancing above the 100 SMA. Meanwhile, technical indicators lack directional strength but hold within positive levels.

Support levels: 1.1745 1.1700 1.1660

Resistance levels: 1.1820 1.1865 1.1900

View Live Chart for the EUR/USD

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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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