EUR/USD Is Mildly Bullish And Could Extend Its Advance Towards 1.1800

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EUR/USD Current Price: 1.1771

• Too early to discuss tapering, according to ECB’s Vice President Luis de Guindos.
• Macroeconomic data reflects slowing economic growth in the EU and the US.
• EUR/USD is mildly bullish and could extend its advance towards 1.1800.

The EUR/USD pair seesawed between gains and losses, finishing Wednesday with modest gains at the upper end of its weekly range. The pair moved on sentiment, dipping ahead of Wall Street’s opening as stocks traded with a soft tone, later bouncing as equities jumped while government bond yields reached fresh weekly highs.

Comments from ECB officers temporarily weighed on the shared currency. Vice President Luis de Guindos said that the European Central Bank could again revise upwards macroeconomic projections for the Eurozone in a few days, adding that third-quarter indicators were positive. However, later in the day, Chief Economist Philip Lane indicated that it’s too early to discuss the end of financial support programs.

Germany published the August IFO Business Climate survey, which contracted by more than anticipated to 99.4. Expectations weighed the most, shrinking to 97.5, although the assessment of the current situation improved to 101.4. The US released Durable Goods Orders, which came in better than anticipated, declining by 0.1% in July. The core reading printed at 0%, missing the expected 0.5% advance. On Thursday, Germany will publish the GFK Consumer Confidence Survey, while the US will release the second estimate of Q2 GDP

 EUR/USD short-term technical outlook

From a technical perspective, the EUR/USD pair is mildly bullish, although additional confirmations are required. The 4-hour chart shows that the pair settled a few pips above a bearish 100 SMA while meeting buyers around a bullish 20 SMA. Technical indicators remain within positive levels but lack directional strength. The pair could extend its advance towards 1.1790, but gains beyond the latter are unlikely at this point.

  Support levels: 1.1720 1.1685 1.1640  

Resistance levels: 1.1790 1.1820 1.1865

Image by moerschy from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.