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Forex pairs in this Article » EUR/USD (Athens) – The EUR/USD has been trading slightly upwards since the early opening in Asia on Sunday, but mostly hovering in a sideways mode.

EUR/USD capped by 1.3600 amidst the US shutdown which could drag for another week at least

The EUR/USD has been trading slightly upwards but mostly in a sidelines trending mode, as there are completely no developments pertaining to the US fiscal impasse and while the deadline for the debt-ceiling is looming. From the single currency perspective, the single currency is supported by less dovish ECB than initially expected; furthermore, the President of ECB Mario Draghi, mentioned that a steadying in Euro-Zone data will prevent further accommodative policy action, which will only help the Euro as it will be a sign of a boosted Europe by the economical perspective. On the other hand, as long as the “Muppet-Show” in US Congress is still in action, a rush to safety might occur should the October 17 debt ceiling be approached. But generally speaking, it is more than obvious that at the end a solution even at the at the 12th hour will be found. Of course, if the solution will be found at the 12th hour however, that also means that the tensions till then will be increased further.

Technical Aspects of the EUR/USD

Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/USD’s daily RSI failed to confirm last weeks high at 1.3646. This coupled with the close proximity of the 1.3670/1.3710 key resistance increases the risk of failure here this week. The accelerated uptrend has been eroded, but in order to alleviate upside pressure a break below the 1.3453 August high is needed. We note the divergence of the RSI and the TD perfected set up on the 240 minute chart – both imply we should see failure shortly.”
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