The EUR/USD managed to close the week at its highest since August 27th, reaching 1.1348 before settling at 1.1335.Technically, bulls continue dominating the pair, as the daily chart shows that the rally extended well above its 100 DMA in the 1.1100 region, whilst the 20 SMA heads higher around 1.1275, reinforcing the static support placed at 1.1282, the 61.8% retracement of its latest bullish run.
In the same chart, the Momentum indicator is around its 100 level with a sharp upward slope, whilst the RSI indicator heads higher around 59. In the 4 hours chart the price is also above a bullish 20 SMA, although the technical indicators have lost upward strength and turned flat, with the RSI at 70.
The immediate resistance comes at 1.1365, the 50% retracement of the same rally, with a break above it favoring a steady continuation towards the 1.1440/50 price zone.
Meanwhile the upcoming FED meeting this Wednesday, is probably the most awaited event of the year, as the Central Bank will unveil whether or not is ready to raise rates. Majors are expected to react to Chinese weekend data at this week opening, but will hardly rally ahead of the US Central Bank meeting
China’s industrial production growth remained weak in August, reaching 6.1% compared to a year before, but marginally higher from the 6.0% printed last month. Also, growth in fixed asset investment slowed to its lowest rate growth in over three years in August, down to 9.2% from 10.3% previous