EUR/USD Forecast: Euro rises in calm between the Chinese and US storms, levels
- EUR/USD has been gaining ground as the market mood improved.
- Tensions around Evergrande and the Fed decision serve as headwinds.
- Tuesday's four-hour chart is showing bears are in the lead.
EUR/USD Current price: 1.1737
Markets are in a better mood on Tuesday, which results in decreased demand for the American currency. The EUR/USD pair ticked marginally higher, currently trading in the 1.1730 price zone. Nevertheless, market participants remain cautious, as the US Federal Reserve announcement on monetary policy looms. The US central bank will provide an update on Wednesday, although expectations for a surprise are pretty much null.
Meanwhile, the market has set aside concerns related to Evergrande, the Chinese property giant. The risk of the company defaulting, however, is still high and may affect the market’s mood later in the day.
On the data front, the EU had an empty macroeconomic calendar. On the other hand, the US has just published August Housing Starts, which rose 3.9% in the month and Building Permits up 6% in the same period. The Current Account posted a deficit of $-190.282 billion in the second quarter of the year.
EUR/USD short-term technical outlook
The EUR/USD pair is edging higher but still suffering from downside momentum on the four-hour chart. It is trading below the 50, 100 and 200 Simple Moving Averages, another indicator that Tuesday's gains may hit a roadblock.
Support levels: 1.1700 1.1660 1.1620
Resistance levels: 1.1755 1.1780 1.1820
More:
PBoC September Preview: Will policymakers step in to ease Evergrande fears?
Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot
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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.
