EUR/USD: Weakness while below the 1.18 level

EUR/USD has advanced after encouraging US data boosted the mood and was last seen trading around the 1.1760 zone. Nonetheless, the bullish scope is limited and the pair is still at risk of falling as per trading below the 1.1800 level, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The EU published August Industrial Production, which rose 0.7% in the month and declined by 7.2% when compared to a year earlier. As for the US, it published the September Producer Price Index, which was up 0.4% when compared to a year earlier, doubling expectations and improving from -0.2%. The core PPI surged to 1.2% YoY, beating expectations. Next in line is a speech from Fed’s vice-chair Clarida, although there are other speakers from the central bank scheduled throughout the afternoon.”

“The EUR/USD pair has advanced after encouraging US data boosted the mood, trading just below the 1.1770 resistance. The short-term picture continues to indicate a limited bullish scope, as the pair advances above a flat 100 SMA but remains below also directionless 20 and 200 SMA, both converging around 1.1800. Technical indicators are recovering from near oversold readings, but remain well into negative territory.”