EUR/USD: EUR is consolidating after active growth the day before
Current trend
EUR is showing ambiguous dynamics against USD during today's Asian session, consolidating near the local highs of September 29, which were renewed against the background of strong growth in the instrument yesterday. Notable support for EUR/USD was provided by not the most confident macroeconomic publications from the USA. Annual data on the dynamics of US GDP for Q3 2021 reflected a sharp slowdown in the US economy from +6.7% YoY to +2.0% YoY, which turned out to be worse than expectations of +2.7% YoY.
Investors also focused on the meeting of the European Central Bank (ECB). As expected, the regulator did not change the parameters of monetary policy, keeping both the rate and the volume of the quantitative easing (QE) program unchanged. At the follow-up press conference, ECB President Christine Lagarde noted that the European economy continues to recover, but its growth rate is gradually slowing down due to epidemiological risks, a period of high energy prices, as well as supply chain disruptions that undermine the recovery in industrial activity. As for the high rates of price growth, Lagarde expects inflationary pressures to ease as early as 2022.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range is narrowing, pointing at the ambiguous nature of trading in the short term. MACD indicator grows, preserving a stable buy signal (located above the signal line). Stochastic keeps its upward direction but is rapidly approaching its highs, which reflects the risks of overbought EUR in the ultra-short term.
Resistance levels: 1.1700, 1.1754, 1.1800, 1.1850.
Support levels: 1.1650, 1.1600, 1.1570, 1.1528.
EUR is showing ambiguous dynamics against USD during today's Asian session, consolidating near the local highs of September 29, which were renewed against the background of strong growth in the instrument yesterday. Notable support for EUR/USD was provided by not the most confident macroeconomic publications from the USA. Annual data on the dynamics of US GDP for Q3 2021 reflected a sharp slowdown in the US economy from +6.7% YoY to +2.0% YoY, which turned out to be worse than expectations of +2.7% YoY.
Investors also focused on the meeting of the European Central Bank (ECB). As expected, the regulator did not change the parameters of monetary policy, keeping both the rate and the volume of the quantitative easing (QE) program unchanged. At the follow-up press conference, ECB President Christine Lagarde noted that the European economy continues to recover, but its growth rate is gradually slowing down due to epidemiological risks, a period of high energy prices, as well as supply chain disruptions that undermine the recovery in industrial activity. As for the high rates of price growth, Lagarde expects inflationary pressures to ease as early as 2022.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range is narrowing, pointing at the ambiguous nature of trading in the short term. MACD indicator grows, preserving a stable buy signal (located above the signal line). Stochastic keeps its upward direction but is rapidly approaching its highs, which reflects the risks of overbought EUR in the ultra-short term.
Resistance levels: 1.1700, 1.1754, 1.1800, 1.1850.
Support levels: 1.1650, 1.1600, 1.1570, 1.1528.
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