FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the common currency closed the week with some solid gains against its American rival, with the EUR/USD pair ending at 1.1335, the highest since August 27th.
Key Quotes:
“Investors struggled to find reasons to buy the greenback, as tepid US data left high levels of uncertainty on what the FED may decide this Wednesday. While a rate hike is still possible, most traders are betting on a delay towards next December.
China also had its saying, with fears of an economic slowdown spreading through other major economies, still weighing on sentiment. Over the weekend, news showed that China’s industrial production growth remained weak in August, reaching 6.1% compared to a year before, but marginally higher from the 6.0% printed last month. Also, growth in fixed asset investment slowed to its lowest rate growth in over three years in August, down to 9.2% from 10.3% previous.
Technically, bulls continue dominating the pair, as the daily chart shows that the rally extended well above its 100 DMA in the 1.1100 region, whilst the 20 SMA heads higher around 1.1275, reinforcing the static support placed at 1.1282, the 61.8% retracement of its latest bullish run. In the same chart, the Momentum indicator is around its 100 level with a sharp upward slope, whilst the RSI indicator heads higher around 59. In the 4 hours chart the price is also above a bullish 20 SMA, although the technical indicators have lost upward strength and turned flat, with the RSI at 70. The immediate resistance comes at 1.1365, the 50% retracement of the same rally, with a break above it favoring a steady continuation towards the 1.1440/50 price zone.”
(Market News Provided by FXstreet)