EUR/USD Forecast: lacking directional strength but near 1.1600

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1586

ZEW Survey expected to show that economic sentiment deteriorated further in October.
US calendar with little of note to offer today, equities will again lead the way.

The EUR/USD pair trades within Monday's range, just below the 1.1600 level as the dollar continues trading softly against its major rivals. The negative sentiment that dominated the weekly opening has receded, with equities trading marginally higher, and base metals retaining their gains. An extra boost for European currencies came from a header with comments from German EU Minister Roth, who said: "it's clear that we will get a Brexit deal," adding, however, that the EU must be protected and that they can't rule out the chance of a no-deal Brexit.

UP next is the German ZEW survey for October, expected to show that the Economic Sentiment deteriorated further both, in the country and the EU. The Union will also publish the August Trade Balance. Later in the day, the US will offer September Industrial Production and Capacity Utilization, among other minor reports.

The 4 hours chart shows that the pair continues trading around the 38.2% retracement of its latest daily slump, trapped within a tight range of moving averages, as the 20 SMA advances in the 1.1570 region, the pair is now stuck around the 100 SMA, while the 200 SMA hovers some 20 pips above the current level, all of them reflecting the absence of directional strength. Technical indicators in the mentioned chart are trying to recover ground, but around their midlines, falling short of confirming a bullish extension. The main resistance is the 1.1620 price zone where the pair has the 50% retracement of the mentioned decline, while only below 1.1530, the low set last Friday, the pair will turn bearish.

Support levels: 1.1575 1.1530 1.1500

Resistance levels: 1.1620 1.1660 1.1700

View Live chart for the EUR/USD

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 tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.