During the week, a scarce macroeconomic calendar and the usual summer blaze flare up horizontally before the major events happen at the end of the week.
The pages filled with speculation about what they can or can not say today, and how they can affect the market and, of course, the EUR / USD parity. Investors are expecting AMB Chairman Draghi to be cautious and not to make major announcements while Yellen will talk about moderation over balance sheet narrowing, while talk is approaching. The reaction of markets is a tightening tone, depending on how different the speeches are from these prejudices, the currency can be shifted upwards.
If the scenario is an extra spice, the USD is weak with political debate around Trump and economic delays in the economy. Summer is approaching the end, and there is no improvement in tax reform or infrastructure investments promised until now, limiting the demand for the dollar. The recent soft inflation in the US is pushing the pressure on the USD.
The pair has been moving horizontally since the beginning of the week, but below the 100 pips of its annual summit, it is up all the way to the end, despite the lack of definitions. The sales pressure rises around 1.1830, with buyers at around 1.1680 / 90. These levels are key levels to be broken today for the confirmation of the move to continue next week.
In the short term, the 4-hour chart shows that the price is swaying above 20 and 100 SMA’s, horizontal and non-directional, technical indicators hold on the middle lines, and they lack directional strength.
Significant technical levels for EUR / USD
Supports 1.1730 and 1.1680 / 90 levels, resistance for 1.1830, 1.1860 and 1.1909 levels.