EUR/USD Price Analysis: Consolidates below the 1.0700 mark, eyes on Eurozone GDP data
|- EUR/USD consolidates in a narrow trading range near 1.0685 on Monday.
- The pair holds above the 50- and 100-hour EMAs; the RSI indicator shows a non-directional movement.
- The immediate resistance level is seen at 1.0718; 1.0655 acts as an initial support level.
The EUR/USD pair oscillates within a narrow trading range below the 1.0700 mark during the Asian session on Monday. Traders prefer to wait on the sidelines ahead of the Eurozone Gross Domestic Product for the third quarter (Q3). The quarterly growth number in the Eurozone is expected to contract by 0.1%, while the annual figure is forecast to grow by 0.1%. The softer report could weigh on the Euro (EUR) and act as a headwind for the pair. The major pair currently trades around 1.0685, unchanged for the day.
From the technical perspective, EUR/USD holds above the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart, supporting the buyers for the time being. However, the Relative Strength Index (RSI) is located in the 40–60 zone, indicating a non-directional movement in the major pair.
The immediate resistance level for EUR/USD is seen at the upper boundary of the Bollinger Band at 1.0718. Any follow-through buying above the latter will see the next barrier near a high of November 6 at 1.0756. The additional upside filter to watch is near the psychological round figure at 1.0800.
On the other hand, the lower limit of the Bollinger Band at 1.0655 acts as an initial support level for the major pair. A break below 1.0655 will see a drop to the 100-hour EMA at 1.0644. Further south, the next contention level is located near a low of November 2 at 1.0591, followed by a low of November 1 at 1.0517.
EUR/USD four-hour chart
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