EUR/USD: Immediate support lines up at 1.1750

EUR/USD is showing some signs of recovery following five consecutive daily pullbacks and looks to regain upside momentum above 1.1800. On the flip side, interim support emerges at 1.1750, FXStreet’s Pablo Piovano reports.

Key quotes

“The single currency, however, is expected to navigate a cautious sea ahead of the key ECB event due on Thursday. Market consensus expects the central bank to re-assess the economic recovery in the region, while closely following any indication of a change in the monetary conditions and/or any comment on the level of the exchange rate.”

“EUR/USD faces interim support in the 1.1750 region (low August 21) ahead of a more relevant contention area in the 1.1700 neighbourhood. The latter is also reinforced by a Fibo level (of the 2017-2018 rally).”

“The daily RSI did not confirm the new top beyond 1.20 earlier in the month, leaving the door open for some near-term weakness.”

“In case bulls regain the upper hand, the immediate hurdle still emerges at the recent peak near 1.2010 ahead of another Fibo level in the 1.2030 zone.”