EUR / USD Current Price: 1.1835
- German data resulted in better-than-expected temporal support for the euro.
- U.S. consumer confidence plunged to a new pandemic low of 84.8 in August, according to CB.
- EUR / USD is technically neutral, but the risk is on the downside.
The EUR / USD pair closes another day around the 1.1800 level as FX traders appear to lack motivation. The main couples have remained at familiar levels, despite some wild swings elsewhere. Markets were in a risky mood throughout the first half of the day, as China and the United States announced good negotiations related to their trade deal. EUR / USD hit an intraday high of 1.1843, supported by encouraging German data as Q2 GDP was revised to -9.7% from a previous estimate of -10.1%. The IFO business climate improved to 92.6 in August from 90.4 in July. The assessment of the current situation and expectations has also improved compared to the previous month.
The greenback gained ground during hours of trading in the United States, with market sentiment deteriorating following the release of the U.S. CB Consumer Confidence Index, which fell in August to a new pandemic low of 84. , 8, well below the previous 91.7. Wall Street worsened, cutting most of its previous weekly earnings. Other data from the United States, however, was positive, with the home price index rising 0.9% in June, while new home sales rose 13.9% in July. On Wednesday, the United States will publish durable goods orders for July, up 4.3%.
Short-term technical outlook EUR / USD
EUR / USD is trading in the 1.1830 price zone by the end of the US session, with a technical neutral position. In the 4 hour chart, the price has spent the day hovering around 20 and 100 converging SMAs. The Momentum indicator is advancing above its midline, while the RSI is heading nowhere around 50. Overall risk is biased downward, with a clearer bearish extension on a breakout below. of 1.1790, while a bullish extension would be more likely if the pair breaks above. 1.1885, unlikely in the current scenario.
Support levels: 1.1790 1.1750 1.1710
Resistance levels: 1.1840 1.1885 1.1920
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