EURUSD – On the daily time frame, we see the pair near the middle the channel after having dropped from a high of 1.17 last week.
There is an minor up trend line holding the pair up at the moment and last two days of up move is thwarted by the centre (dotted) uptrend line of the channel.
The Euro zone August inflation remained unchanged from July while the Euro zone producer prices fall as expected in July. The Eurozone Services Business Activity Index saw an increase to 54.4 in August, matching June’s four-year high. The number is also slightly above the earlier flash estimate of 54.3.
EURUSD seems unaffected by all this data at the moment. Traders are on the fence at the moment as USD longs have also been pared, as seen in CFTC reports.
Speculators pared back bullish bets on the U.S. dollar in the latest week to their smallest in more than two months. The value of the dollar’s net long position fell to $23.99 billion in the week ended Aug. 25, from $32.26 billion the previous week.
The above might explain the lack of energy and momentum for the EURUSD at the moment.
I am NEUTRAL on this pair and would observe further price action before initiating any trades.
To your Trading Victory