EUR/USD Forecast: Growth concerns to keep weighing on the sentiment

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1839

Sluggish global economic growth to keep weighing on the market’s sentiment.
Washington announced during the weekend the delay in TikTok ban.
EUR/USD is neutral-to-bearish as lower lows hint increasing selling interest.

The EUR/USD pair closed a second consecutive week unchanged around 1.1840, as the dollar got to appreciate ahead of the close on upbeat US data combined with risk-off. The US published on Friday the preliminary estimate of the Michigan Consumer Sentiment Index, which improved in September to 78.9 from 74.1 in August. Meanwhile, US indexes fell for a third consecutive week, led by the tech-shares sell-off

Concerns gyrated around the absence of a coronavirus aid package, and renewed tensions between the US and China, after Washington ordered Google and Apple to remove TikTok and We-Chat from their platforms as of Sunday. Over the weekend, however, Secretary of Commerce Wilbur Ross announced a one-week delay until September 27, amid a developing deal between the Chinese company and Oracle. Sluggish global growth amid the ongoing pandemic adds to the gloomy picture. The market’s sentiment will keep on leading financial markets these days as the macroeconomic calendar won’t include first-tier data.

EUR/USD short-term technical outlook

The EUR/USD pair is neutral according to the daily chart, as it spent the week around a directionless 20 DMA, although the larger ones keep heading north far below it. The Momentum indicator turned marginally lower around its midline while the RSI indicator stands flat around 54. In the short-term, and according to the 4-hour chart, the technical picture is neutral-to-bearish, with the pair trapped around congesting moving averages and indicators turning lower around their midlines.

Support levels: 1.1795 1.1750 1.1710

Resistance levels: 1.1880 1.1915 1.1950

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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