EUR/USD needs to surpass 1.1870 to gain momentum

EUR/USD has bounced from a fresh weekly low of 1.1795 but remains within familiar levels as dull trading across the FX board continues. The pair is neutral in the near-term and needs to advance beyond 1.1870 to gain strength, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“The greenback gained some ground on the usual market concerns, related to the latest coronavirus outbreak in Europe, which, according to the WHO has become the new epicentre. Also, speculative interest has finally realized that a week ahead of the US presidential election, a stimulus bill will stay away from the table until after the event.”

“The US has just published September Durable Goods Orders, which came in much better than anticipated. The monthly figure printed at 1.9% against the 0.5% expected, while the core reading, Nondefense Capital Orders ex Aircraft, resulted in 1% against expectations of 0.5%. August reading was upwardly revised to 2.1%. The good news did little for markets, as no relevant move was seen in dollar crosses or in US indexes.”

“The short-term picture is neutral, according to the 4-hour chart, as the EUR/USD pair remains unable to surpass a mildly bearish 20 SMA, now struggling around it. The longer moving averages remain below the current level, with limited directional strength. Technical indicators, in the meantime, are stuck to their midlines.”