EUR/USD finds no inspiration in data

By FXstreet.com | August 21, 2014 AAA

FXStreet (Córdoba) - The EUR/USD barely moved following the latest series of economic data as investors seem unwilling to push the dollar further ahead of Fed Yellen speech tomorrow in Jackson Hole.

Data showed Eurozone consumer confidence declined further in August with the index hitting -10 versus -9.0 expected. On the other side of the Atlantic, July existing home sales rose 2.4% versus a fall of 0.4% expected while the Philly Fed manufacturing index rose to 28.0 against 19.2 forecasted. US leading economic index rose to 0.9% versus consensus of 0.6%.

The EUR/USD moved a few pips lower before bouncing to fresh daily highs, although the move was tame, with the pair stalling at a high of 1.3280. At time of writing, the EUR/USD is at 1.3275, 0.13% above its opening price.

EUR/USD technical outlook

“Dollar momentum seems temporarily interrupted, with US indexes at record highs and US 10Y yields above 2.40%, giving high yields a breath”, said Valeria Bednarik, chief analyst at FXStreet. “Technically however, the pair is far from suggesting a strong upward potential, with the 1 hour chart showing indicators flat above their midlines and price above a still bearish 20 SMA. In the 4 hours chart indicators maintain their bearish slope despite in oversold levels, supporting the shorter term view”.

Bednarik locates immediate supports at 1.3250, 1.3210 and 1.3170 while she sees resistances at 1.3300, 1.3330 and 1.3370.

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