EUR/USD on consolidation mode, limited below 1.1130

EUR/USD is consolidating around 1.1100, headed toward a daily gain of around 30 pips. Like it happened yesterday the upside was capped below the 1.1125 level. The euro continues to move sidewards against the US dollar.

EUR/USD outlook

Since last week the pair continues to move around 1.1070, facing difficulties holding above 1.1100 while finding support on top of 1.1000. The pair was unable to recover the levels it had before the UK referendum as the recovery that brought the price from near 1.0900 to 1.1180/90 lost strength.

“From a technical point of view, the EUR/USD pair continues to show little progress, trapped within a clear range between 1.1000 and 1.1180 for a third consecutive week. Investors have turned extremely cautious after the latest political developments in the region, and it may take an ECB economic policy meeting to actually bring it back to life”, said Valeria Bednarik, Chief Analysts at FXStreet.

According to her, the 4-hour chart shows technical indicators within positive territory, but lacking clear directional strength. “At this point, the pair needs to advance above 1.1189, the post-Brexit high to present a more positive outlook, whilst beyond 1.1000, the risk turns towards the downside, with scope then to test 1.0910”.