EUR/USD analysis: 1.1800 likely on a disappointing Fed
|EUR/USD Current price: 1.1655
The EUR/USD pair recovered some ground this Tuesday, ending the day marginally higher at 1.1655, but not before setting a fresh almost 2-year high of 1.1711. A bout of dollar selling took place ahead the US opening, with no certain catalyst behind the move, yet as usual, data coming from Europe was stronger-than-expected, whilst in the US, macroeconomic releases were mixed, once again with numbers below expected. Early Europe, the release of the German IFO survey showed that local business confidence rose in July to a new record high, with the index reaching 116.0 from 115.2 in June, reflecting the strong momentum in the local economy. In the US, house prices rose in May by less than expected, rising by 5.7% when compared to a year earlier, although the Richmond manufacturing index rose from 7 to 14 in July.
The retracement from the mentioned high was a consequence of profit taking as the Fed looms, rather than diminishing buying interest around the pair, as despite the US Federal Reserve is expected to keep its monetary policy unchanged, it could make some sort of announcement, particularly related to reducing the balance sheet.
Anyway, and from a technical point of view, the bullish trend prevails, with the EUR/USD pair developing within an ascendant channel, coming from mid April, although in the short term, the stance is neutral, as the price barely holds above a bullish 20 SMA, whilst technical indicators lose upward momentum within positive territory. The 2015 yearly high was 1.1713, and a break above the level could see the pair approaching to the 1.1800 figure, where the pair has the 200 SMA in the weekly chart, and the top of the current bullish channel.
Support levels: 1.1615 1.1580 1.1530
Resistance levels 1.16600 1.1710 1.1745
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.