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EUR/USD lacking directions strength - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD is ending the day pretty much unchanged around the 1.1240 region, in what has been a quite choppy day across financial markets in Europe and the US.

Key Quotes:

"Risk sentiment dominated the previous Asian session, leading to some EUR and JPY gains across the board. But the negative sentiment eased with London opening, leading to an intraday decline in those currencies, as stocks recovered ground. European indexes, however, closed slightly lower whilst Wall Street ended the day mixed, and not far from Monday's close, and so did the EUR/USD pair. There was plenty of macroeconomic releases all through the day, but investors pay no attention to them. Among the most relevant were German inflation that fell 0.2% in September, resulting in a 0.0% year-on-year reading. In the US, consumer confidence in the same month jumped to 103.0 against expectations of 96.1.

The short term picture is mild bearish, given that the price is hovering around a horizontal 20 SMA in the 1 hour chart, whilst the technical indicators head lower below their mid-lines, yet as long as above the 1.1200 level, the declines should remain limited. In the 4 hours chart, the technical stance is bullish, as the price is above its 20 SMA that anyway lacks directional strength, whilst the technical indicators are turning slightly higher in neutral territory. In this last time frame, the price is now around its 100 and 200 SMAs, both together and horizontal, reflecting the lack of directional strength."

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