On Tuesday, the EUR/USD pair was declining amid the publication of negative ZEW Economic Sentiment Index. In August, Germany’s Economic Sentiment dropped from 25.0 to 12.1, while the eurozone’s index fell from 47.6 to 33.3. Moreover, the USD gained some support from Retail Sales statistics for August, released in the US, which indicated a 0.2% increase in August.
Today, Consumer Price Index statistics are due in the eurozone and the US. Both in the eurozone and the US, the indicators are expected to come in at 0.0% on a monthly basis and grow by 0.2% on a year-on-year basis.
Only a difference between the actual data and the forecasts may change the pair dynamics. At present, market participants are turning their attention to the forthcoming Fed’s meeting.
Support and resistance
On the 4-hour chart, the price has turned up at the lower MA of Bollinger Bands and is likely to grow in the short run.
MACD histogram is in the positive zone and below its signal line, indicating, on the contrary, a possible downward movement.
The nearest support levels are 1.1171, 1.1093.
The nearest resistance levels are 1.1318, 1.1360.
Long positions can be opened from the level of 1.1320 with the target at 1.1355 and stop-loss at 1.1300, as well as from the level of 1.1365 with the target at 1.1410 and stop-loss at 1.1340.
Short positions can be opened from the level of 1.1165 with the target at 1.1100 and stop-loss at 1.1190.