EUR/USD Still Looks Very Bullish As Bulls Remain In Control
The EUR/USD pair ended the day with gains and near a daily high set at 1.1247 and the short term picture favors additional advances, as the 1 hour chart shows that the price is hovering around its 200 SMA after accelerating above the 20 and 100 SMAs, whilst the Momentum indicator heads slightly higher above the 100 level and the RSI indicator advances slowly around 64.
In the 4 hours chart the price advanced above its 20 SMA, now offering an intraday support around 1.1200, whilst the RSI indicator turned north and advanced beyond 50 supporting additional advances towards the 1.1335 region for this Tuesday, on renewed demand beyond the mentioned daily high.
Risk sentiment was again the main market driver, with safe-haven currencies outperforming. US data was far from encouraging, as the PCE figures for August showed that personal income shrank to 0.3%, while spending rose to 0.4%.
On monthly basis, the PCE price index came out at 0.0%, but advanced to 1.3% from previous 1.2% yearly basis. Pending home sales retreated in the same month, down 1.4% against expectations of a 0.5% advance.
FED’s officers fueled uncertainty, with Dudley stating that he expects the FED to hike later this year, but saying that will depend on upcoming data. Chicago FED’s Evans on the other hand, resulted quite dovish, saying that he prefers a later lift-off to avoid the risk of lowering inflation.