More entertained day this Tuesday, with data releases from all major economies sees EUR/USD holding around the 1.3800 figure ahead of US opening. In Europe, German ZEW survey came out mixed, with sentiment decreasing in the country, but positive for the region. In the US, inflation readings surprised to the upside with a shy spike up to 0.2% monthly basis, albeit the Empire State manufacturing index presented a huge miss, decreasing to 1.3 from 5.6 previous month. Finally TIC long term purchases for the US beat expectations, while Janet Yellen added nothing new to the economic policy picture. Stocks in Europe present a slightly bearish tone, while gold nosedived, dragging AUD lower against its rivals.
Technically the EUR/USD hourly chart shows price limited below a strongly bearish 20 SMA, while indicators stand neutral in negative territory; in the 4 hours chart indicators maintain a bearish tone, with price coming back some from its 200 EMA, currently around 1.3790. Either a break below 1.3780 or above 1.3820 will set a more clear directional move for the day, with the downside favored towards 1.3720 on a break of the strong Fibonacci support.
Support levels: 1.3780 1.3750 1.3720
Resistance levels: 1.3820 1.3850 1.3890