EUR/USD: Consolidative phase continues ahead of fresh clues
Premium|Take advantage of 75% OFF on your first month.
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 75% OFF!
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
CLAIM OFFEREUR/USD Current price: 1.1144
- The German IFO Survey showed the Business Climate deteriorated further in September.
- The United States will release September CB Consumer Confidence.
- EUR/USD lacks directional momentum, downside limited by broad US Dollar weakness.
The EUR/USD pair keeps trading uneventfully a handful of pips above the 1.1100 mark on Tuesday, as bad news from Europe undermined demand for the Euro. Germany published the IFO survey on Business Climate, which fell in September to 85.4 from the 86.6 posted in August. The assessment of the current situation deteriorated to 84.4, while expectations declined to 86.3, as expected.
Financial markets were cautious at the beginning of the day as China announced a series of measures to support the battered economy. The People’s Bank of China (PBoC) will cut the Reserve Requirement Ratio (RRR) by 50 basis points (bps) in the near term, and they will cut the seven-day repo rate by 0.2%. Finally, the central bank outlined plans to support the property market, which included cutting the interest rates on mortgages. Nevertheless, stock markets remained afloat throughout the Asian and European sessions.
The upcoming United States (US) session will bring September CB Consumer Confidence, which is expected to improve modestly from the previous 103.3, and the Richmond Fed Manufacturing Index for the same month.
EUR/USD short-term technical outlook
The EUR/USD pair trimmed half of its Monday’s losses, and the daily chart shows the pair has a limited bullish scope while a steeper decline remains out of the picture. Technical indicators hold within positive levels although without clear directional strength and below their recent highs, reflecting the ongoing consolidative stage. At the same time, a flat 20 Simple Moving Average (SMA) provides dynamic support at around 1.1090. Finally, the 100 SMA gains upward traction after crossing above the 200 SMA, both far below the shorter one.
The 4-hour chart shows the pair is neutral-to-bearish in the near term. A flat 20 SMA caps advances at around 1.1150, while the 100 SMA aims marginally higher at around 1.1090, reinforcing the support area. Technical indicators, in the meantime, head modestly lower below their midlines, reflecting the absence of buying interest rather than supporting an upcoming slide.
Support levels: 1.1090 1.1050 1.1010
Resistance levels: 1.1160 1.1200 1.1250
EUR/USD Current price: 1.1144
- The German IFO Survey showed the Business Climate deteriorated further in September.
- The United States will release September CB Consumer Confidence.
- EUR/USD lacks directional momentum, downside limited by broad US Dollar weakness.
The EUR/USD pair keeps trading uneventfully a handful of pips above the 1.1100 mark on Tuesday, as bad news from Europe undermined demand for the Euro. Germany published the IFO survey on Business Climate, which fell in September to 85.4 from the 86.6 posted in August. The assessment of the current situation deteriorated to 84.4, while expectations declined to 86.3, as expected.
Financial markets were cautious at the beginning of the day as China announced a series of measures to support the battered economy. The People’s Bank of China (PBoC) will cut the Reserve Requirement Ratio (RRR) by 50 basis points (bps) in the near term, and they will cut the seven-day repo rate by 0.2%. Finally, the central bank outlined plans to support the property market, which included cutting the interest rates on mortgages. Nevertheless, stock markets remained afloat throughout the Asian and European sessions.
The upcoming United States (US) session will bring September CB Consumer Confidence, which is expected to improve modestly from the previous 103.3, and the Richmond Fed Manufacturing Index for the same month.
EUR/USD short-term technical outlook
The EUR/USD pair trimmed half of its Monday’s losses, and the daily chart shows the pair has a limited bullish scope while a steeper decline remains out of the picture. Technical indicators hold within positive levels although without clear directional strength and below their recent highs, reflecting the ongoing consolidative stage. At the same time, a flat 20 Simple Moving Average (SMA) provides dynamic support at around 1.1090. Finally, the 100 SMA gains upward traction after crossing above the 200 SMA, both far below the shorter one.
The 4-hour chart shows the pair is neutral-to-bearish in the near term. A flat 20 SMA caps advances at around 1.1150, while the 100 SMA aims marginally higher at around 1.1090, reinforcing the support area. Technical indicators, in the meantime, head modestly lower below their midlines, reflecting the absence of buying interest rather than supporting an upcoming slide.
Support levels: 1.1090 1.1050 1.1010
Resistance levels: 1.1160 1.1200 1.1250
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.