EUR/USD: Lower in Range, Still in Waiting Mode

FXStreet  |


EUR/USD Current price: 1.1036

  • Germany announced the 2020 Budget, meant to tackle “great challenges.”
  • EUR/USD skewed to the downside, break below 1.1015 required.

The shared currency is weaker this Tuesday, amid fading appetite for riskier assets. The EUR/USD pair is trading lower in range around 1.1035, after posting a daily high of 1.1059, with the wait-and-see stance prevailing, ahead of the European Central Bank monetary policy meeting and due to the lack of relevant macroeconomic releases coming from these two economies.

Germany announced the 2020 Budget, and Finance Minister Olaf Scholz made some comments afterward, noting that the budget will tackle great challenges, including the global trade dispute, adding that German’s fiscal position is solid. Meanwhile, equities are trading lower in Europe, leading to some modest losses on Wall Street ahead of the opening.

EUR/USD short-term technical outlook

The EUR/USD pair is stuck around the 50% retracement of its latest daily decline, neutral-to-bearish according to the 4 hours chart, as indicators in the mentioned chart lack directional strength, the Momentum around its 100 level and the RSI at 53. The 20 SMA has lost its bullish strength, now flat just below the current level, while the 100 SMA heads marginally lower around the daily high. Monday’s low at 1.1015 is the immediate support, with a break below it opening doors for a steeper decline. The upside is being capped by a Fibonacci level, the 61.8% retracement, at 1.1075.

Support levels: 1.1015 1.0990 1.0955

Resistance levels: 1.1075 1.1110 1.1145

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Equities Contributor: FXStreet

Source: Equities News

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