Upbeat U.S. inflation data on Thursday gave the dollar some relief, having been battered by a run of poor U.S. indicators and concerns about China's economy.
- The euro slipped to $1.1359, down from a 7-week peak of $1.1495 scaled the previous day after ECB's Nowotny's comments
- The common currency was on track to end the week effectively flat, monthly charts however lean bullish as RSI is biased up
- A run towards the Aug high looks likely, daily charts suggest a pullback as RSI diverges and a bear engulfing candle was seen yesterday
- Market focus on ECB executive board member Benoit Coeure's speech later in the day along with EZ CPI data for further momentum
- EUR/USD is currently trading at 1.1386, with immediate support at 1.1377 (hourly Tenkan and 10 MA) and resistance at 1.14 (psychological level)
Resistance Levels:
R1: 1.14 (psychological level)
R2: 1.1495 (Session High Oct 15)
R3: 1.1520 (Hourly High Aug 26)
Support Levels:
S1: 1.1377 (hourly Tenkan and 10 MA)
S2: 1.1363 (Session low Oct 15)
S3: 1.1345 (Daily Low Oct 13)
