Oct 25, 2022
VOT Research Desk
Tuesday’s financial markets are in a waiting-and-seeing mode, with the American Dollar slightly outperforming its key competitors.
As the US market opens, the EUR/USD is trading around 0.9860, aided by the weaker tone of stocks, which reflects investors’ worries about economic growth.
The German IFO Survey, which came in better than expected and showed that the business climate remained steady in October, printing at 84.3 from 84.4 the previous month, helped the EUR.
The evaluation of the existing situation decreased less than expected, resulting in a score of 94.1, while expectations increased to 75.6 from a revised 75.3 in September.
EUR/USD Technical Analysis Report
Although close to new three-week highs, the EUR/USD pair trades in a constrained intraday range for a second straight day, exhibiting the first symptoms of downward weariness. In addition, it continues to move below a long-term descendant trend line that acts as resistance at 0.9940 and originates from this year’s high of 1.1494 (recorded back in February).
The EUR/USD is developing above a somewhat bullish 20 SMA but well below solidly bearish longer ones, which is reflected in the daily chart’s modest purchasing interest.
Technical indicators are now in a neutral state, with the RSI at about 52 and the Momentum moving forward around its midline.
The short-term outlook is bullish to neutral. The pair is advancing above all of its moving averages on the 4-hour chart, which are still trendless and inside a narrow 50 pip range. While still above their midlines, technical indicators lack directional strength.
Levels of support: 0.9840, 9780, and 9730
Levels of resistance: 0.9895 0.9940 0.9985
