EUR/USD Forecast: Posted Modest Intraday Gains, The Downside Seems Limited At This Point

EUR/USD Current Price: 1.1866

The market’s sentiment was positive with a pinch of caution ahead of the Fed.
German ZEW Survey is likely to show Economic Sentiment worsened in September.
EUR/USD posted modest intraday gains, the downside seems limited at this point.

The EUR/USD pair peaked at 1.1887 as the greenback eased against all of its major rivals. The market mood was mostly upbeat, spurred but weekend news reporting that Oxford and AstraZeneca resume trials on their potential coronavirus vaccine. A scarce macroeconomic calendar and first-tier events later this week kept investors in cautious mode, with major pairs holding within familiar levels.

The EU published July Industrial Production, which was up 4.1% in the month, beating expectations. When compared to a year earlier, it rose 8.7% better than the 8% expected. This Tuesday, Germany will publish the September ZEW Survey, with the Economic Sentiment seen at 69.8 in the country, and expected at 62.8 in the EU, both below the previous readings. The US will publish August Industrial Production and Capacity Utilization.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair is trading in the 1.1860 price zone, up for the day. Ahead of the Asian opening, it has lost the positive momentum seen earlier in the day, but the risk remains skewed to the upside. The 4-hour chart shows that the price holds above all of its moving averages, whit the 20 SMA heading higher and crossing above the larger ones. The Momentum indicator has turned lower, while the RSI turned flat within positive levels, indicating limited selling interest. The 61.8% retracement of its September declines comes at 1.1915, while the pair reached a high last week at 1.1917. Gains beyond it should favor a bullish extension towards the year high at 1.2011.

Support levels: 1.1840 1.1800 1.1750

Resistance levels: 1.1915 1.1960 1.2010

View Live Chart for the EUR/USD

Image sourced from Pixabay

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