EUR/USD Analysis: challenging bulls around 1.1000

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1009

German ZEW survey came in better-than-expected, but sentiment remains depressed.
EUR/USD set to extend its decline once below 1.0990, a Fibonacci support.

The EUR/USD pair is trading at fresh weekly lows around 1.1000, as the dollar continues recovering ground, although at a modest pace. The pair fell so far to 1.0994, in spite of better-than-anticipated European data, as the German ZEW survey came in at -22.8 for the country at -23.5 for the EU in October, still well into negative ground. Speculative interest maintains the cautious stance, with equities trading mixed and not far away from their opening levels, and government debt yields retreating modestly ahead of auctions. The US session is bringing little of relevance, a couple of Fed’s speakers and the September Monthly Budget Statement.

EUR/USD short-term technical outlook

The EUR/USD pair has flirted with the 38.2% retracement of its latest daily advance, this last an immediate support at 1.0990. In the 4 hours chart, it´s trading below a bullish 20 SMA, but above bearish larger ones, and as technical indicators turned south, currently piercing their midlines, suggesting that the slide may accelerate on a break below the mentioned support. The pair would need to recover beyond 1.1045 to shrug off the short-term negative stance and have more chances of reaching the 1.1100 figure.

Support levels: 1.0990 1.0960 1.0920

Resistance levels: 1.1045 1.1080 1.1120

View Live chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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