EUR/USD: turns lower, but still within range
EUR/USD Current price: 1.1738
The EUR/USD pair turned south after the release of the ECB minutes of the latest meeting, as while the central bank still sees the economic recovery on track, policymakers are still concerned on inflation and EUR's strength. The document also showed that tapering will likely begin next 2018, at a slow and gradual pace, and that rates will remain on hold at current record lows until the end of the ECB's bond buying program. The pair fell down to 1.1734 on the headlines, hovering nearby ahead of Wall Street's opening, following US better-than-expected macroeconomic figures. Weekly unemployment claims for the week ended September 29 came in at 260K, against the 265K expected, while the trade deficit shrunk in August to $42.4B, also beating expectations and below previous $-43.6B.
The pair has turned short-term negative after failing to extend gains beyond 1.1780 earlier on the day, as in the 4 hours chart, the price retreated below its 20 SMA, now a few pips above the current level, while technical indicators also lost upward strength, with the Momentum still within neutral territory, but the RSI accelerating lower around 41.The weekly low is key, as below it, the pair can retest August monthly low of 1.1660 later on the day. Anyway, the pair has been confined to a well-limited 110 pips range ever since the week started, and seems unlikely it would move far away from it ahead of the US monthly employment report to be released this Friday.
Support levels: 1.1720 1.1695 1.1660
Resistance levels: 1.1780 1.1825 1.1850
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.
