EUR/USD outlook: Recovery is losing traction
|EUR/USD
EURUSD is trading within a narrow range during European session on Tuesday, following strong rebound in past two days after larger bears were rejected at key support at 1.0635 (May 31 low).
Technical picture remains increasingly bearish on daily chart (rising negative momentum / MA’s in full bearish setup) and warn that corrective action might be near its end (capped by daily Tenkan-sen).
Inflation in the Eurozone was slightly lower than expected in August, which should add pressure on the currency, though consumer prices are still over two times above ECB’s 2% target.
This keeps the central bank alerted, despite dovish signals from the last policy meeting, as the policymakers left the door opened for possible further hikes, should the situation deteriorate.
Near-term action can be described as consolidation while moving between 1.0700 (daily Tenkan-sen / psychological barrier) and 1.0635 support, with sustained break above 1.0700 to allow for stronger correction and expose upper pivots at 1.0768 (Sep 12 high) and 1.0792 (daily Kijun-sen).
Conversely, firm break of 1.0635 support would open way for test of next key supports at 1.0611 (Fibo 38.2% of 0.9535/1.1275 uptrend) and 1.0553 (daily Ichimoku cloud top).
Res: 1.0700; 1.0752; 1.0768; 1.0792.
Sup: 1.0675; 1.0654; 1.0635; 1.0611.
Interested in EUR/USD technicals? Check out the key levels
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.