EUR/USD: lacking directional strength ahead of FOMC – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD traded quite choppy this Monday, surging up to 1.1372 at the beginning of the European session, as Asian stocks closed in the red, on renewed concerns over China.

Key Quotes:

“The pair slowly retreated from the level, even despite EU Industrial Production data for July surprised to the upside, resulting in an increase of 0.6% monthly basis, and 1.9% compared to a year before.

The pair fell down to 1.1282 early in the American session, bouncing from a major Fibonacci support, the 61.8% retracement of the 1.1017/1.1713 advance, ending the day a few pips above the 1.1300 level. As expected, the pair lacks clear directional strength ahead of the upcoming FED’s meeting starting next Wednesday, as investors are wary of driving currencies’ prices far away at this point.

Technically, a negative tone prevails in the short term, as the 1 hour chart shows that the price is below a bearish 20 SMA, whilst the technical indicators head slightly lower below their mid-lines. In the 4 hours chart, the 20 SMA advanced further higher below the current level, now around the 1.1280 region, whilst the technical indicators hold …read more

Source:: FX Street