EURUSD Remains Weak After US Consumer Sentiment News

The Euro (EUR) inched lower against the US Dollar (USD) on Monday, decreasing the price of EURUSD to less than 1.1650 following some key economic events. The technical bias has however turned bullish because of a higher high in the recent upside rally.

EUR/USD Technical Analysis

As of this writing, the pair is being traded near 1.1640. On the downside, a support can be noted around 1.1632 (a key horizontal support) ahead of 1.1629 (the low of the last major downside move) and then 1.1600 (the confluence of horizontal support as well as psychological number) as demonstrated in the given below chart.

On the upside, a hurdle may be noted around 1.2100 (a short-term horizontal resistance area as well as psychological number) ahead of 1.2176 (a major horizontal resistance) and then 1.2200 (the psychological number). The technical bias shall remain bullish as long as the 1.0839 support area is intact.

US Consumer Sentiment

U.S. consumer sentiment tumbled in early November, though the index remained at the second-highest level of the year so far. The University of Michigan’s index of consumer attitudes fell to 97.8 in November, well below the expectations of a survey of Reuters economists, who forecast no change from the 100.7 level at the end of October. The measure soared to 101.1 on Oct. 13—the highest level since 2004—and has been consistently deflating since then.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

 

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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