FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that Monday saw majors trading in quite limited ranges, with low trading volumes amid the US and Canada being closed on a local holiday.
Key Quotes:
“There were some macroeconomic news in Europe, but those had little effect among investors, who remained side-lined ahead of more relevant news worldwide, later on this week.”
“The most relevant piece of news in the EU was the Sentix confidence index that fell down to 13.6 from previous 18.4 and well below the 18.4 expected, clearly reflecting the local concerns over the Chinese economic slowdown spreading worldwide.”
“The EUR/USD pair traded higher in range, finding short term buying interest on an approach to the 1.1120 level at the beginning of the London session, as local share markets opened with a positive tone.”
“Technically, the 1 hour chart shows that the price is slightly above a mild bullish 20 SMA, whilst the technical indicators hold above their mid-lines, lacking upward strength. In the same chart, the 100 SMA heads lower around 1.1190, providing an immediate intraday resistance for this Tuesday.”
“In the 4 hours chart, the technical picture is slightly positive, as the technical indicators head higher after crossing their midlines towards the upside, whilst the latest candle opened above the 20 SMA. Nevertheless, the price needs to advance beyond the mentioned 1.1190 level, also Friday’s high, to confirm additional gains during the upcoming sessions, whilst below 1.1120 the risk will turn towards the downside.”
(Market News Provided by FXstreet)