EUR/USD Price Forecast: Consolidative phase around 1.1600 continues

EUR/USD Current price: 1.1597

• Market participants await the release of United States data starting on Thursday.
• The poor performance of global indexes helps US Dollar to stay afloat.
• EUR/USD neutral-to-bearish in the near-term, support at 1.1570.

The EUR/USD pair extends its consolidative phase, trading a handful of pips below the 1.1600 mark in the American sessionon  Tuesday. The US Dollar (USD) remains resilient across the FX board amid market participants’ cautious stance. 

Investors await the release of delayed United States (US) macroeconomic data, alongside fresh updates. Following the longest government shutdown in the country’s history, a funding bill was finally passed last week, allowing federal workers to resume their activities.

Still, the US will start releasing macro figures on Thursday. Until then, the focus will remain on Federal Reserve (Fed) officials’ speeches. 

Across the pond, the European calendar had nothing relevant to offer earlier in the day, although Wednesday will bring the EU September Current Account and the final estimate of the October Harmonized Index of Consumer Prices (HICP).

Other than that, global stocks remain under pressure, with Asian and European indexes experiencing sharp losses, hinting at another bad day on Wall Street. Speculative interest is focused on earnings reports, particularly those of the tech sector, amid recent concerns about overvalued shares. 

EUR/USD short-term technical outlook

The near-term picture for the EUR/USD pair is neutral-to-bearish. The 4-hour chart shows the pair finding near-term buyers around its 100 Simple Moving Average (SMA) in the 1.1570 price zone, yet developing below the 20 and 200 SMAs both at around 1.1610. The same chart shows technical indicators hold within negative levels: The Momentum indicator maintains its downward slope, yet the Relative Strength Index (RSI) indicator turned flat around 48, hinting at easing selling interest.

In the daily chart, EUR/USD is neutral. Technical indicators head nowhere at around their midlines, in line with the limited price action seen in the last two trading days. Other than that, the pair holds just above a flat 20 SMA, while a directional 100 SMA caps advances at around 1.1655. Finally, a bullish 200 SMA loses upward momentum far below the current level, but still suggests a limited bearish potential in the mid-term.

Support levels: 1.1570 1.1540 1.1510 

Resistance levels: 1.1610 1.1655 1.1690