EUR/USD
The American dollar edged marginally lower in the US afternoon, as local share markets traded in a moderated fashion, with Wall Street hovering around its daily opening for most of the day. The market remains in wait-and-see mode ahead of the upcoming economic policy decisions from some major Central Banks, starting this Thursday with the BOE, and ending next week with the FED and the BOJ. There were some minor releases in Europe, including August CPI for Italy and French, which remained steady at low levels, in line with the deflationary levels seen in the region. The EU as a whole, also released its Industrial Production data for July, which fell by 1.1%, missing expectations of a 0.9% decline, and leaving the year-on-year reading at -0.5%. In the US, with the MBA mortgage approvals were up to 4.2% from previous 0.9%, whilst the August export price index came in at -2.4%, in line with expectations, but the import price index fell by 0.02%.
The EUR/USD pair picked up momentum and climbed to 1.1273, surpassing its previous weekly high by a couple of pips before retreating to the current 1.1250 region. There has been no major progress from a technical point of view, given that the price remains stuck within Friday’s range, and in the 4 hours chart, the price is now above its moving averages that anyway remain all together in a tight 20 pips range, a clear indication of the absence of directional strength. In the same chart, technical indicators head higher above their mid-lines, but the movement has been too shallow to be enough to confirm the rally will extend during the upcoming hours. A daily descendant trend line coming from this year high at 1.1615, stands this Thursday around 1.1300, the level to break to see the pair gaining some additional ground towards 1.1366, August monthly high.
Support levels: 1.1200 1.1160 1.1120
Resistance levels: 1.1300 1.1335 1.1370
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