EUR/USD: Bulls maintain the pressure on 1.1200

EUR/USD Current price: 1.1195

• The positive tone of Wall Street leads the US Dollar lower against the Euro.
• Speculative interest prices in another Federal Reserve’s 50 bps cut in November.
• EUR/USD aims to conquer the 1.1200 threshold, but nothing is set and done yet.

The EUR/USD pair retreated from an intraday high of 1.1198 hit at the beginning of the day but holds nearby ahead of Wall Street’s opening. The US Dollar found some near-term demand early on Wednesday, advancing unevenly across the FX board. For a change, the Euro stands among the USD's most resilient rivals.

Financial markets rushed away from the USD on Tuesday, following discouraging United States (US) data that fueled speculation the Federal Reserve (Fed) will deliver another 50 basis points (bps) interest rate cut when it meets in November, vs post-Fed speculation for a 25 bps trim.

As a result, US indexes ended the day in the green, although it overseas rivals could not benefit from the positive momentum. Asian and European indexes trade mixed, not far from their opening levels. Nevertheless, US futures aim north, supporting another positive day and additional USD losses.

Data-wise, the macroeconomic calendar has little to offer. The European Central Bank (ECB) had a non-monetary policy meeting, usually a no-event. As for the US, the country released MBA Mortgage Applications for the week ended September 20, which were up by 11%. August New Home Sales will be released later in the day.

EUR/USD short-term technical outlook  

From a technical point of view, the EUR/USD pair is poised to extend its advance, albeit the battle around 1.1200 has not been defined yet. The pair is up for a second consecutive day and trading near the mentioned figure. In the daily chart, EUR/USD posted a higher high and a higher low, while the 20 Simple Moving Average (SMA) turned marginally higher in the 1.1090 price zone. At the same time, the 100 SMA aims firmly north above a mildly bullish 200 SMA, both far below the current level. Technical indicators, in the meantime, have turned flat within positive levels, lacking directional strength yet reflecting the absence of selling interest.

In the near term, and according to the 4-hour chart, the risk skews to the upside. EUR/USD remains well above bullish moving averages, while technical indicators picked up north within positive levels. The positive momentum is scarce, but still, there are no technical signs of a potential decline. Near-term support can be found at around 1.1170, where the pair bottomed twice in the last sessions.

Support levels: 1.1165 1.1120 1.1090   

Resistance levels: 1.1200 1.1250 1.1290