Market Overview

EUR/USD Forecast: Keeps Trading Within Familiar Levels A Handful Of Pips Above 1.1800

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EUR/USD Forecast: Keeps Trading Within Familiar Levels A Handful Of Pips Above 1.1800

EUR/USD Current Price: 1.1813

  • Market participants continue to ignore macroeconomic data in a risk-off environment.
  • The WHO has said that Europe is the new epicenter of the pandemic.
  • EUR/USD keeps trading within familiar levels a handful of pips above 1.1800.  

Dull trading across the FX board extended this Tuesday, with EUR/USD trading uneventfully for a fifth consecutive day. The pair fell to 1.1795, from where it quickly bounced towards the 1.1820/30 price zone, where it spent most of the American session. Investors ignored macroeconomic releases, but instead hold their breath ahead of the first-tier event scheduled for next week, which includes the US presidential election, preliminary estimates of Q3 GDP and several central banks’ decisions on monetary policy.

Meanwhile, speculative interest seems to have finally realized that there won’t be a deal on a stimulus package ahead of the election. Also, and further denting the market’s mood, the WHO said that Europe is now the epicenter of the pandemic. Data wise, news were mixed, as US Consumer Confidence contracted to 100.9 from a downwardly revised 101.9, according to CB. However, Durable Goods Orders in the country jumped 1.9% in September, largely surpassing the 0.5% expected. The macroeconomic calendar for the EU and the US will be quite scarce this Wednesday, with no relevant figures scheduled.

EUR/USD Short-Term Technical Outlook

The  EUR/USD pair trades around 1.1810, little changed ever since the week started, The 4-hour chart shows that the pair is neutral-to-bearish, as technical indicators turned modestly lower around their midlines. The price is currently retreating from a flat 20 SMA while holding above the larger ones. Bull could have better chances on a break above 1.1870, an immediate resistance level, although a bullish continuation will be clearer once the pair moves above 1.1915.

Support levels: 1.1770 1.1725 1.1680

Resistance levels: 1.1870 1.1915 1.1950

View Live Chart for the EUR/USD

Image sourced from Pixabay

 

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Posted-In: EUR/USD FXStreetNews Eurozone Global Markets General

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