EUR/USD Forecast: range shrinking, bulls may lose the grip

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1582

Soft European data undermined demand for the common currency.
EUR/USD needs to leave the 1.1530/1.1620 range to extend moves one way or the other.

The EUR/USD pair is modestly up this Tuesday, as a better market mood weighs on the greenback, although poor EU data keeps the upside limited. The German ZEW survey for October showed that business sentiment deteriorated more than anticipated, as the index plunged to -24.7 for the country vs. the previous -10.6 and the expected -11.3, while for the EU, it fell to -19.4, down from -7.2 in the previous month and well below the expected -9.1. The Union also released its trade balance figures for August, with the seasonally adjusted surplus up to €16.6B, an increase compared with July €12.6B.

The US will publish August Industrial Production and Capacity Utilization ahead of Wall Street's opening, later the JOLTS jobs Openings figure for August, the NAHB Housing Market Index for October, and the TIC Flows for August.

From a technical point of view, the pair continues trading uneventfully right below the 1.1600 figure, stuck around a Fibonacci level and unable to find a clear direction. The pair is trapped within moving averages in the 4 hours chart, a sign of such absent directional strength, while technical indicators continue hovering around their midlines, without hinting upcoming direction. As commented on previous updates, the pair would need to break the 1.1530/1.1620 range to have chances of extending its move one way or the other.

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.

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