Stocks turned lower in Asia, and the Japanese yen appreciated, with no clear catalyst behind the move, but leading to an EUR/USD advance at the beginning of the European session. Nevertheless, EUR gains have remain limited so far, with the pair currently retreating from a daily high of 1.1071, and trading in quite a limited intraday range.
Later today, the US will release its Durable Goods Orders figures, the Markit Services PMI and Consumer confidence data for October, which may define whether the pair can extend the rally during the American session. But with the FED meeting looming this Wednesday, there's a good chance that the pair continues trading range bound, as investors wait for clues.
View the Live chart of the EUR/USD
Technically, the bearish tone remains intact, with the 20 SMA having cached up with price, now heading south around 1.1080, and the technical indicators losing their upward strength below their mid-lines, after correcting extreme oversold readings. Currently trading around 1.1050, the pair needs to accelerate its decline through 1.1010 to be able to extend its decline towards fresh lows in the 1.0960 region.
Above 1.1080 on the other hand the rally can extend up to 1.1120, a strong static resistance level, where selling interest is expected to contain the upside, at least for this Tuesday.
Latest updates on the EUR/USD Forecast
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