FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD advanced partially this Tuesday, but failed to rally beyond the 1.1400 level, weighed by worse-than-expected local macroeconomic data and a market that tossed and turned between hope and despair.
Key Quotes:
“The EUR was on demand early in the data, as poor Chinese trade balance data, kept stocks under pressure and lifted the common currency up to 1.1410 against its American rival. But the beginning of the European session, German was again in the eye of the storm, with its September inflation numbers, unchanged from a year before, recording 0.0%. Monthly basis, the CPI fell 0.2%. The ZEW economic survey released afterwards showed that Economic sentiment has further declines in the country during October, down to 1.9 from previous 12.1, whilst the assessment of the current situation resulted at 55.2 from previous 67.5. The EU economic sentiment, according to the same survey, shrank to 30.1 matching expectations, and sending the EUR/USD pair down to a session low of 1.1364.
The US session saw local stocks firming up after the opening, helping the American dollar to recover some ground, but the indexes later capitulated and so did the greenback. Technically, the short term picture for the pair is neutral-to-bullish, given that the 1 hour chart shows that the price is a few pips above its 20 SMA, whilst the technical indicators lack clear directional strength above their mid-lines. In the 4 hours chart, however, the upside remains favored, as the 20 SMA heads strongly higher around 1.1350, whilst the Momentum indicator is aiming to bounce from its mid-line and the RSI indicator consolidates near overbought levels.”
(Market News Provided by FXstreet)