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.

Valeria Bednarik FXStreet

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

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

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.