EUR/USD Offers A Good Short Opportunity

euro-out-look

The EUR/USD pair turned short term bearish after breaking below a key Fibonacci level, now the immediate resistance around 1.1280.

The 1 hour chart shows that the price has been consolidating between that level and 1.1257, the daily low, during all of the American afternoon.

In the same chart, the 20 SMA has gained bearish strength above the current level, whilst the technical indicators have turned slightly higher, but remain well below their mid-lines.

In the 4 hours chart, the price is now a handful of pips below its 20 SMA, whilst the technical indicators present tepid bearish slopes around their mid-lines, suggesting a limited downward potential at the time being.

Meanwhile mixed European data and tepid US macroeconomic readings failed to trigger the usual moves in the forex board, although Wall Street cheered the poor American figures, speculating that the FED will have no choice but to delay its first rate hike towards December.

In the EU, the naughty surprise came with the German ZEW Survey, showing a sharp slide in sentiment all through the region, as the EU reading fell down to 33.3 in September from 47.6 previous, whilst German sentiment fell down to 12.1 from previous 25.

In the US, Retail Sales in August rose by 0.2% against expectations of a 0.1% advance, whilst Industrial Production in the same month fell 0.4% against expectations of a 0.2% decline. The NY Empire State manufacturing index come out at -14.67, against market’s forecast of -0.75, all of which points for a slower economic growth during the beginning of the Q3.

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