EUR/USD held a narrow range near 1.1420 as traders waited for the Federal Reserve's meeting minutes. The daily trend stays bearish inside a descending channel, even as stronger Eurozone confidence data lent the euro some support.
EUR/USD traded near the 1.1420 level at the start of today's session, holding a tight sideways range after touching its highest point since the start of the week. The pair reached 1.1448 amid thinning trading volumes as the market waited for a catalyst.
That catalyst is the US Federal Reserve's meeting minutes, due for release at 21:00 Egypt time, which could offer fresh signals on the path of monetary policy and interest rates.
The daily trend stays bearish
The overall trend on the daily chart remains bearish, with the pair still trading inside a descending price channel. The Relative Strength Index moves around the 42 level, pointing to a decrease in selling pressure without reaching oversold territory.
The MACD indicator, however, is attempting an initial positive signal, though upward momentum stays insufficient to confirm a trend reversal. Support sits at 1.1400, 1.1360 and 1.1290, while resistance runs through 1.1480, 1.1530 and 1.1600.
Eurozone data lends the euro support
The euro drew support from improving sentiment data. The Eurozone Sentix Investor Confidence index rose to -3.1 points in July from -13.4 points previously. German factory orders rose 1.9% in May.
The outlook stays tilted to the downside as long as price holds below 1.1530, while corrective rebound attempts may continue if the pair keeps trading above 1.1400.
Source: DailyForex
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