EURUSD Outlook – FXWW Chatroom

EUR/USD – Upside Risk. EUR reversed initial losses to close firmer above 
1.11-handle on USD softness following dovish FOMC minutes and softer 
than expected US CPI inflation. Expectation of US possibly delaying rate 
hike suggest that monetary policy divergence between US and EU could 
take a breather. Low-yielding currencies (EUR, CHF, JPY) were broadly 
firmer against the USD overnight. EUR was last at 1.1140 levels, higher 
than overnight close. On Greek’s 3rd bailout package, German parliament 
has voted in approval. Day ahead, 4-hourly momentum and stochastics 
are indicating a mild bullish bias. Next resistance at 1.1230 (23.6% fibo of 
Mar low to May high) before 1.1340 (200 DMA). Support at 1.1050 levels. 
Week remaining brings GE GfK Consumer Confidence (Sep); EC Consumer 
Confidence (Aug A) on Fri.

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