EUR/USD muted, eyes on US shutdown
The pair is now trading almost unchanged from last Friday’s close, as the cautious tone prevails amongst traders regarding the possibility of a US federal government shutdown in case politicians don’t come to an agreement before midnight in Europe. The research team at TD Securities observed “The charts are producing some conflicting signals—strong, bull trend versus overbought—over a range of timeframes which suggests that while the basic set up here looks constructive (potential bull flag break out above 1.3570), the market looks stretched. We think the market will “go with” a move either above 1.3570 or below 1.3465 in the near-term, reflecting the conflicting signals and the lack of conviction in the market at the moment”.
EUR/USD levels to watch
The pair is now up 0.04% at 1.3528 with the next resistance at 1.3565 (high Sep.27) ahead of 1.3569 (high Sep.19) and then 1.3598 (high Feb.5). On the flip side, a dip beyond 1.3467 (low Sep.20) would aim for 1.3462 (low Sep.25) and finally 1.3459 (23.6% of 1.3104-.13569).
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