EUR/USD Current Price: 1.0240
- Russia reportedly suspended oil flows to Europe through the Druzhba pipeline.
- US data surprised to the upside, underpinning high-yielding assets.
- EUR/USD is mildly bullish but still trading inside the latest range.
The dollar remained on the back foot throughout the first half of the day, helping EUR/USD to reach an intraday high of 1.0247. The EUR and the GBP advanced despite a sour market mood, catching up after lagging on Monday, without a certain catalyst backing their modest gains. Still, the EUR/USD pair remains within familiar levels.
Market participants remain cautious ahead of the release of the US Consumer Price Index on Wednesday, as the figures would set the tone of the Federal Reserve’s September meeting. Meanwhile, concerns about economic progress persist. The shared currency retreated on the back of headlines indicating that Russia reportedly suspended oil flows via the southern leg of the Druzhba pipeline, blaming it on transit payment issues.
Data-wise, the EU macroeconomic calendar had nothing to offer, while the US has just released Q2 Nonfarm Productivity, which decreased by 4.6% QoQ, and Unit Labor Cost for the same period, up 10.8%, both beating the market’s expectations. The positive data underpinned stocks, which weighed on the dollar. Later in the American session, the country will publish August IBD/TIPP Economic Optimism.
EUR/USD short-term technical outlook
The EUR/USD pair surpassed a Fibonacci level at 1.0205 and trades halfway towards the next one, the 50% retracement of its latest daily slide at 1.0280. The latter has been capping advances since mid-July. Technical readings in the daily chart skew the risk to the upside, as the pair continues to find buyers around a mildly bullish 20 SMA, while technical indicators bounced from around their midlines.
The 4-hour chart shows that the pair is still neutral. Technical indicators remain directionless, the Momentum around its midline and the RSI at around 58. At the same time, the 20 and 100 SMA stand around the aforementioned Fibonacci support, while a bearish 200 SMA contains advances, converging with the daily high.
Support levels: 1.0205 1.0150 1.0105
Resistance levels: 1.0280 1.0325 1.0360
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.