EUR/USD: EUR is consolidating near local highs Current trend EU
Current trend
EUR is showing weak gains against USD during the Asian session, recovering from the correctional decline the day before, which did not allow the instrument to consolidate at its Friday highs.
At the end of last week, USD came under pressure amid the publication of weak US employment data for August. However, active USD sales were soon replaced by a corrective pullback, but investors were disappointed, since now the US Fed has every reason not to rush to tighten monetary policy.
The European statistics of last Friday turned out to be not much more positive than the American ones, so EUR/USD did not manage to consolidate at the local highs since June 30. Yesterday, buying activity on EUR was supported by moderately optimistic data from Germany. Factory Orders rose 3.4% MoM in July after rising 4.6% MoM in June. Analysts had expected reduction of volumes of 1.0% MoM. In annual terms, the indicator slowed down from +26.5% to +24.4% YoY, which also turned out to be significantly better than market forecasts at +13.9% YoY.
Support and resistance
Bollinger Bands in D1 chart show stable growth. The price range is slightly narrowing, being spacious enough for the current activity level in the market. MACD indicator is growing preserving a weak buy signal (located above the signal line). Stochastic, on the other hand, is developing a fairly confident corrective decline, signaling that EUR is overbought in the ultra-short term.
Resistance levels: 1.1900, 1.1950, 1.2000.
Support levels: 1.1849, 1.1800, 1.1741, 1.1700.
EUR is showing weak gains against USD during the Asian session, recovering from the correctional decline the day before, which did not allow the instrument to consolidate at its Friday highs.
At the end of last week, USD came under pressure amid the publication of weak US employment data for August. However, active USD sales were soon replaced by a corrective pullback, but investors were disappointed, since now the US Fed has every reason not to rush to tighten monetary policy.
The European statistics of last Friday turned out to be not much more positive than the American ones, so EUR/USD did not manage to consolidate at the local highs since June 30. Yesterday, buying activity on EUR was supported by moderately optimistic data from Germany. Factory Orders rose 3.4% MoM in July after rising 4.6% MoM in June. Analysts had expected reduction of volumes of 1.0% MoM. In annual terms, the indicator slowed down from +26.5% to +24.4% YoY, which also turned out to be significantly better than market forecasts at +13.9% YoY.
Support and resistance
Bollinger Bands in D1 chart show stable growth. The price range is slightly narrowing, being spacious enough for the current activity level in the market. MACD indicator is growing preserving a weak buy signal (located above the signal line). Stochastic, on the other hand, is developing a fairly confident corrective decline, signaling that EUR is overbought in the ultra-short term.
Resistance levels: 1.1900, 1.1950, 1.2000.
Support levels: 1.1849, 1.1800, 1.1741, 1.1700.