EUR/USD: US data upbeat, but not enough

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1826

Spain´s tough answer to Catalonia backing a EUR's relief rally
US data beat expectations, but no shocker there

The EUR/USD pair regained the positive tone it had at the beginning of the day heading into the US opening, trading a handful of pips below its daily high of 1.1841. Despite confined to a limited intraday range, the pair seesawed early Europe after headlines from Spain indicated that the Central government is not willing to dialogue, but rather preparing to trigger the Art. 155 of the Constitution, which will trim Catalonian autonomic powers. The poor performance of equities worldwide, dragged by poor earnings reports and plummeting tech stocks, added to the negative case of the pair, although the tough position of the Spaniard government seems to have spooked away the ghost of an excision, helping the common currency to recover some ground. US data just releases came in better-than-expected, as the Philadelphia Fed Manufacturing Survey came in a 27.9 for October, beating market's expectations. Weekly jobless claims were at 222K for the week ended October 13th, better than the 240K forecasted by markets.

The pair is currently struggling around the 23.6% retracement of its latest bullish run while also in the critical 1.1820/30 region, unable to confirm a break above the strong resistance area. Nevertheless, the overall stance is short-term bullish, as the price recovered above is 20 and 100 SMAs, whilst technical indicators gained upward momentum above their mid-lines. Should the rally extend beyond the current region, it has scope to extend its gains up to 1.1879 the daily high posted at the end of last week.

Support levels: 1.1800 1.1760 1.1720

Resistance levels: 1.1840 1.1880 1.1920

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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