EUR/USD May Hit 1.1366 In Short Term
The EUR/USD pair closed the day with some limited gains, having found intraday buyers on an early decline to 1.1120 during the European morning.
The pair however, faltered around 1.1180, trading nearby, however, by the end of the day. 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.
Volumes were low as the US and Canada were down on Labor day. Chinese stocks fell once again, but European indexes managed to post some intraday gains, and investors traded on relief, with majors correcting part of their latest losses, but the USD holding near its recent highs.
German Industrial Production up in July 0.7% against expectations of a 1.0% advance, while June figures were revised to -0.9%. Also, the EU Sentix Investor confidence index fell down to 13.6 against previous 18.4, mostly due to growing fears of contagion of the Chinese economic slowdown.