FXStreet (Córdoba) - The EUR/USD has spent most of the day in a very narrow range in the absence of news or economic developments.

With only second-tier data coming from the Eurozone and the US, the EUR/USD was confined to a phase of consolidation between 1.3415-1.3430, unable to define a clear direction.

Last Friday, below expectations US nonfarm payrolls saw the pair climbing to a high of 1.3444 but lacked momentum to extend gains. The key event this week will be the European Central Bank monetary policy decision Thursday, although it could turn into a non-event in the absence of surprises.

EUR/USD technical outlook

“The EUR/USD maintained a tight range through the first two sessions of the day, heading into US opening capped below the 1.3430 Fibonacci level, and with the short term technical picture presenting a mild bearish tone, with the hourly chart showing price around a flat 20 SMA and indicators below their midlines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart indicators are losing their bullish strength but hold in positive territory, while price holds above a flat 20 SMA currently around 1.3400. Some follow through above 1.3440 is required to confirm an upward continuation, as the level limited advances for most of last week”.

Bednarik locates next support levels at 1.3405, 1.3370 and 1.3335, while she places resistances at 1.3440, 1.3475 and 1.3500.

Related Articles
  1. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  2. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  3. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  4. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  5. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  6. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  7. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  8. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  9. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
  10. Forex News

    How The Forex "Fix" May Be Rigged

    When it comes to forex, some types of "fixes" are legal. But some really aren't.
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!