The EUR/USD currency pair are remaining. It trades just under 1.1350 as it starts its second straight day of consolidating following the release of a potentially market-moving event. Momentum traders are heavily focused on the pair, which has a good amount of buy/sell equilibrium. They closely watch key economic data releases from the US and the Euro area. Look for early Wednesday releases on inflation, employment, and economic growth. Taken together, these pieces of knowledge have the potential to propel a more vigorous wave of activity in the commercial market.
Going forward, the EUR/USD pair now sees obstacle levels ahead at 1.1405, 1.1435, and 1.1470. Sellers have consistently dealt with the 1.1400 level defense, forming a wall that has made every attempt to break through it that much more difficult for buyers. If the pair manages to exceed this resistance ceiling, it might indicate a bullish change in market sentiment. This positive change can help us make even bigger gains.
On the negative side, support levels are found at 1.1330, 1.1285, and 1.1240. The EUR/USD pair has gone on to soar well above all its moving averages. On the 20 Simple Moving Average (SMA), a bullish trend is strong and appears at the 1.1200 psychological level. The 100 and 200 SMAs are both very steeply upward sloping. This positioning, deep into the red, further bolsters a bullish thesis for the pair.
Even with these positive signs, bullish market momentum seems contained for now. The Momentum indicator flirts with its 100 line, signaling a continued lack of potent directional momentum. The Relative Strength Index (RSI) now sits around 45, indicative of a recent increase. This might suggest weak momentum, but it suggests strong potential for upward momentum should buying pressure increase.
The daily chart below shows that the EUR/USD pair is currently trading near its open – a lack of directional momentum. With the risk on the upside, traders are careful but upbeat regarding the breakout’s potential.
Market participants are particularly attentive to upcoming economic reports that will shed light on inflation trends in both the US and Eurozone economies. The planned openings out Wednesday should serve to shake up the trading environment with greater effect than usual. If this is stronger-than-expected inflation or employment figures, then that might help push euro/dollar higher. Such a shift would likely send the EUR/USD pair higher.