EUR/USD unable to break 1.1075, retreats to 1.1050
- US Dollar steady, post mixed results across the board.
- Euro still up versus Greenback, but upside remains limited.
The EUR/USD pair retreated after the beginning of the American session and fell toward the 1.1050 area after finding resistance again below 1.1075.
Awaiting a breakout
Data released today in the US surpassed expectation (Philly Fed, jobless claims and existing home sales) but failed to boost the Greenback that remains limited amid lower US yields.
The US Dollar continues to trade within a range even after the FOMC meeting. The central bank cut rates as expected, another ‘mid-cycle adjustment’. “The currency market ran with the narrative that ties the reaction function to the data. While the US economy is slowing, it has improved relative to the weakness seen earlier in the year. What's more, the global economy has yet to show the much-needed signs of acceleration that are needed to tug the USD lower”, mentioned TD Securities analysts.
The EUR/USD is trading in the weekly range, now slightly above 1.1050, a few pips under the level it had before the FOMC statement.
Key barrier at 1.1075
The upside again was capped by the 1.1075 area by the third-day in-a-row. If the Euro breaks and holds on top it could rise to test the 1.1100 zone. Above the next resistance might be seen at 1.1105/10.
On the flip side, an intraday support lies at 1.1045/50 (American session low / 20-hour SMA), below a test of the daily low at 1.1020 could be seen. The critical support is 1.0990.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
