EUR/USD headed to 1.1800 ahead of Sentix?
The EUR/USD pair set-off a brand new week on a positive footing, as the bulls aim to take on the post-NFP recovery towards 1.1800 on the Eurozone Sentix Investor Confidence data release.
EUR/USD supported at 1.1730 in Asia
The spot remains better bid so far this session, having caught a fresh bid-wave over the last hour, following a brief consolidative phase witnessed in the overnight trades.
The latest leg higher in EUR/USD pair can be mainly attributed to fresh USD selling seen across the board, as the Asian traders remain cautious, digesting dismal Chinese services PMI and the latest North Korea headlines. Last Friday, the Russian news agency reported of North Korea planning to test a ballistic missile that is capable of reaching the west coast of the US.
However, further upside looks limited in the near-term, as the US dollar is expected to find support from upward revisions made to the US employment data last Friday, which backs the case for a Dec Fed rate hike.
Later today, amid holiday-thinned markets, focus remains on the German industrial production data and Eurozone Sentix numbers for fresh impetus to the EUR bulls, as the Eurozone investor sentiment for October is expected to improve to 28.5 versus 28.2 last.
The Japanese, US and Canadian markets are closed today in observance of their respective National Holidays.
EUR/USD Technical Levels
Valeria Bednarik, Chief Analyst at FXStreet explained: “In the 4 hours chart, the pair ended right below a bearish 20 SMA, while technical indicators remain within negative territory, lacking directional strength, indicating a limited buying interest around the pair short term. The pair bottomed for the week at 1.1669, where it has the mentioned 100 DMA, whilst August low comes at 1.1661, making of the 1.1660 a critical support for these upcoming days. Support levels: 1.1695 1.1660 1.1620 Resistance levels: 1.1780 1.1825 1.1850.”