EURUSD: Neutral in the short term

The week begins in slow motion with the holidays in Japan and the USA. EURUSD pair is limited to a narrow range around the level of 1.1730. Despite Friday’s headlines suggesting a possible North Korean rocket test, there was no big news about the weekend. However, the mood of risk aversion dominated the Asian session, with gold as a safe haven being the most notorious engine.

Regarding the data, Germany has just published its August figures for industrial production, which were better than expected. Production in the industry rose by 2.6% against the previous month, surpassing the expected 0.7%. Compared with the previous year, production grew by 4.7%. In addition, the sentiment index for investors in the EU reached a 10-year high of 29.7 points, exceeding the expectations of 28.5. As the markets in the US and Canada are closed due to local holidays, pairs are likely to spend the rest of the day quietly ahead of the main publications this week.

From a technical point of view, the price has risen by 23.6% of the April / September rally by 1.1730, and in the long term the risk is lower, since the price remains below a downtrend of SMA of 20, the negative in the south. In the short term, the 4-hour chart also maintains a neutral bearish trend, while the price wars with an SMA with 20 bearers are declining, while the technical indicators have no directional strength but lie below their central lines.

The immediate resistance is 1.1780 before a more relevant region is 1.1820 / 30. Gaining beyond the latter seem unlikely at this point, but as the pair goes on, the rise will look more constructive. The daily minimum was set at 1.1719 and became the immediate support before 1.1695 and 1.1660.

Written by FXStreet