EUR/USD Forecast: quietly consolidating below 1.1200
The week starts once again in slow motion, with holidays in Japan, the US and Canada, although the greenback is modestly higher following the US second presidential debate. Mrs. Clinton has once again emerged victorious according to the media, after a tough weekend for Mr. Trump, following the leak of a video with offensive comments about women, which resulted in some Republicans calling for him to quit the race. Still, thin volumes across the financial world are limited, and the EUR/USD pair trades modestly lower around 1.1180.
From the macroeconomic side, Germany released its current account and trade balance figures for August, generally better than expected, although not enough to trigger some action. Also, EU Sentix Investor Confidence bounced strongly in October, up to 8.5 from previous 5.6, indicating that, despite slow growth, investors remain confident.
As from the technical picture, the pair bounced from a low of 1.1168 reached in the current session, with the upward potential limited according to the 4 hours chart, as the price is struggling with bearish moving averages, whilst technical indicators aim modestly higher, but still below their mid-lines. The immediate resistance comes at 1.1210, with gains beyond it anticipating an advance up to the 1.1240 region.
Below 1.1160 on the other hand, the pair can retest the lower band of its latest range, in the 1.1100/30 price zone.
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.
