- EUR/USD trades sideways in a narrow trading range ahead of the Euzozone growth numbers, US inflation data.
- The pair holds above the 50- and 100-hour EMAs; RSI indicator shows a non-directional movement.
- The first resistance level will emerge at 1.0714; 1.0675 acts as an initial support level.
The EUR/USD pair oscillates around 1.0695–1.0755 in a narrow trading band during the early European session on Tuesday. Traders prefer to wait on the sidelines ahead of key data from the Eurozone and the US. These figures could trigger volatility in the market in the near term. The major pair currently trades around 1.0695, losing 0.02% for the day.
The Eurozone Gross Domestic Product (GDP) for the third quarter (Q3) will be released in the European session on Tuesday. The quarterly growth number is expected to contract by 0.1%, while the annual growth number is estimated to expand by 0.1%. The upbeat Eurozone economic data might lend some support to the Euro (EUR) against the US Dollar (USD). On the US docket, the US Consumer Price Index (CPI) will be due later in the day.
Technically, EUR/USD holds above the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart, suggesting the path of least resistance to the upside.
The first resistance level for the major pair will emerge near the upper boundary of the Bollinger Band at 1.0714. A decisive break above the latter will see a rally to a high of November 6 at 1.0756. The next barrier is located at the psychological round figure at 1.0800.
On the other hand, the 50-hour EMA at 1.0675 acts as an initial support level for EUR/USD. The key contention level is seen at the lower limit of the Bollinger Band at 1.0658. Further south, the additional downside filter to watch is a low of November 2 at 1.0591, followed by a low of November 1 at 1.0517.
It’s worth noting that the Relative Strength Index (RSI) is located in the 40–60 zone, indicating a non-directional movement in the major pair.
EUR/USD four-hour chart