EUR/USD Forecast: Easing within range, support at 1.1815
EUR/USD Current price: 1.1851
- Mixed European data puts some pressure on the shared currency.
- The market focus is on the ECB monetary policy meeting later in the week.
- EUR/USD accelerates its slump amid renewed demand for the greenback.
The EUR/USD pair trades lower in range in the 1.1850 price zone, starting to give up to the renewed dollar´s demand. The market’s mood is mixed as investors struggle for the next catalyst, which could be the European Central Bank monetary policy announcement on Thursday.
Ahead of the event, the US macroeconomic calendar will remain scarce, with the latest on traders’ minds being the poor Nonfarm Payrolls report released on Friday. In the meantime, European data was once again mixed. Germany published the September ZEW Survey, which showed that Economic Sentiment in the country contracted to 26.5, while for the whole Union, it resulted at 31.1, both missing the market’s expectations. On the other hand, EU Gross Domestic Product was upwardly revised to 2.2% QoQ from 2%, beating expectations.
EUR/USD short-term technical outlook
The EUR/USD pair trades around the 23.6% retracement of its latest daily run between 1.1663 and 1.1908 at 1.1850, the immediate support level. The 38.2% retracement of the same rally stands at 1.1815, and only below the latter, the pair could turn bearish.
From a technical point of view, the risk is skewed to the downside. The 4-hour chart shows that the pair is trading below a still bullish 20 SMA, while the longer ones grind marginally higher, well below the current level. Technical indicators, however, have turned lower, with the Momentum already within negative levels and the RSI currently piercing its midline. Bulls can retake control if the pair breaks above the 1.1910 resistance level.
Support levels: 1.1850 1.1815 1.1770
Resistance levels: 1.1910 1.1950 1.1990
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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.
