- ECB’s Draghi says the pressure on nominal wages is increasing.
- Fed’s Barkin doesn’t expect to see a recession in the U.S.
- Investors remain on the sidelines waiting for fresh headlines on the U.S.-China trade conflict.
For the third straight trading day, the EUR/USD pair is struggling to make a decisive move in either direction and fluctuating in a narrow channel near the 1.12 mark. As of writing, the pair was up 0.15% on a daily basis at 1.1205.
The lack of macroeconomic data releases from the euro area and the U.S. on Wednesday caused the trading action to remain subdued. More importantly, the uncertainty surrounding the outcome of this week’s trade talks in Washington between the U.S. and Chinese officials force investors to refrain from making large bets and stay on the sidelines.
Earlier today, while speaking at a Q&A session at the Generation €uro Students’ Award, European Central Bank President Mario Draghi said that the pressure on nominal wages was increasing but was largely ignored by the participants.
On the other hand, the low market volatility is also reflected upon the greenback today with the US Dollar Index staying virtually unchanged on a daily basis a little above the 97.50 mark. Richmond Fed President Barkin today argued that there was no risk of a recession considering how low the unemployment and interest rates were.
Thursday’s macroeconomic calendar won’t be featuring any data releases from the euro area. FOMC Chairman Powell’s speech in the second half of the day will be looked upon for fresh impetus.
Technical outlook by FXStreet Chief Analyst Valeria Bednarik
The EUR/USD pair trades lower in range, offering a neutral-to-bearish stance in its 4 hours chart, as it was again contained by sellers aligned around a bearish 100 SMA, which now extends its decline below the Fibonacci resistance at 1.1220, while technical indicators turned modestly lower around their midlines. The 20 SMA converges with a Fibonacci support around 1.1190, limiting the downside in the short-term. The bearish case should be stronger once below 1.1155, while bulls may take over only if the pair recovers the 1.1280 price zone.
Support levels: 1.1190 1.1155 1.1110
Resistance levels: 1.1220 1.1250 1.1280
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