Technical analysis – EUR/USD faces resistance at 1.1730 as traders await CPI
-
EUR/USD remains in tight range.
-
Short-term downtrend line still intact.
-
Technical oscillators show weak signs.
EUR/USD encountered strong resistance once again at the 1.1730 level, following the Eurozone’s unemployment rate drop to its lowest level in July and ahead of today’s flash CPI release. The pair continues to consolidate within a narrow range of 1.1590–1.1730 since early August, with the short-term descending trendline remaining intact.
A decisive break below the 1.1590 support and the long-term ascending trendline could shift focus toward the 100-day simple moving average (SMA) at 1.1515, with further downside potential toward the longer-term ascending line near the 1.1370 region, while still preserving the broader bullish structure.
Conversely, a sustained move above the immediate resistance at 1.1730 would likely pave the way for a retest of 1.1790, followed by the multi-year high at 1.1830 and the psychological thresholds of 1.1900 and 1.2000.
Technical indicators currently reflect a neutral bias. The MACD is flat near the zero line, the stochastic oscillator is stabilizing below the 80 level, and the RSI is hovering slightly above the 50 mark.
In brief, EURUSD remains in a consolidation phase, with traders awaiting a breakout from the 1.1590–1.1730 range for clearer directional cues. A downside break could trigger a corrective move toward 1.1515, while an upside breakout would reinforce bullish momentum toward 1.1790 and beyond. Upcoming Eurozone CPI data may act as a catalyst for the next significant move.
Author
Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.
