EUR/USD Current Price: 1.1760
- Concerns related to the next US aid package and the spread of coronavirus weigh on mood.
- A scarce macroeconomic calendar leaves major pairs in the hands of sentiment.
- EUR/USD at risk of falling in the short-term but the wider view still favours the upside.
The EUR/USD pair is trading unchanged in the 1.1760 price zone, after a failed attempt to resume its advance. The pair surged to 1.1806 with London opening, but it quickly turned back south, as investors struggle for direction. News that the US Congress is incapable of agreeing on the next coronavirus aid package weighed on investors’ mood, alongside comments from WHO Director Tedros, who said that there might never be a solution for stopping the spread of COVID-19.
The macroeconomic calendar has little to offer today, as the EU published the June Producer Price Index, which rose 0.7% in the month, and declined by 3.7% when compared to a year earlier, better than anticipated. As for the US, the country will publish the IBD/TIPP Economic Optimism Index for August, and June Factory Orders.
EUR/USD short-term technical outlook
The EUR/USD pair continues to trade above the 23.6% retracement of its July rally at around 1.1735, the immediate support. The 4-hour chart shows that a flat 20 SMA continues to cap advances, while technical indicators head south, the Momentum well into negative territory and the RSI around its midline. Nevertheless, the bearish potential is limited by the lack of dollar’s demand, with declines still seen as buying opportunities.
Support levels: 1.1735 1.1695 1.1650
Resistance levels: 1.1800 1.1845 1.1890
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