The EUR/USD has shown little progress these last few days, once again, stuck around the 1.1200 level. The daily chart shows that the price has been hovering around horizontal moving averages, with the 20 SMA now around 1.1245.
In the same chart, the Momentum indicator is flat around 100 whilst the RSI is also flat right below its 50 level, in line with a neutral stance.
In short term, the 4 hours chart shows that the price has managed to advance a few pips above its 20 SMA, whilst the technical indicators are bouncing from their mid-lines, with no actual momentum. The base of the range has been set at 1.1080, which means additional declines below it, are required to confirm a bearish continuation, while bulls may get encouraged only with an upward acceleration beyond 1.1335.
Choppy trading and no clear trend has been the theme surrounding the EUR/USD pair for one more week, as risk sentiment and increasing uncertainty over what’s next for both Central Banks, have kept investors beyond cautious. Nevertheless, US FED’s head, Janet Yellen, shed some light on Thursday, saying that the US is still in the way of a rate hike sometime this year. The common currency fell down to 1.1104 intra-week, but managed to close it around the 1.1200 level, which seems to have a comfort level for scared investors.
During this week, market’s attention will focus in the EU inflation and the US employment report, both expected to offer some clues on the health of these economies. However, risk-related sentiment will also have its saying on the forex board.