EUR/USD continues to show very little activity on Tuesday, as the pair trades in the mid-1.34 range in the European session, its lowest level since November. German data remains soft, as German Import Prices posted a weak gain of 0.2%. In the US, today’s highlight is CB Consumer Confidence. The markets are expecting another strong showing from the June release.
 Here is a quick update on what’s moving the pair.
- EUR/USD continues to show very little movement.
- Current range:Â 1.34 to 1.3450.
Further levels in both directions:
- Below: 1.34, 1.3375 and 1.33.
- Above: 1.3450, 1.35, 1.3550, 1.3585, 1.3610, 1.3650 and 1.3677.
- On the downside, 1.34 is critical support.
- 1.3450 is immediate, weak resistance, before 1.35.
EUR/USD Fundamentals
- 6:00 German Import Prices. Estimate 0.3%, actual 0.2%.
- 13:00 US S&P/CS Composite-20 HPI. Estimate 9.8%.
- 14:00 US CB Consumer Confidence. Estimate 85.5 points.
*All times are GMT.
For more events and lines, see the EUR/USDEUR/USDEUR/USDEUR/USDEUR/USD.
EUR/USD Sentiment
- Markets gearing for crucial week: Investors have started the week on the sidelines, waiting for Wednesday’s triplet market-moving events. These include the FOMC policy statement, US GDP and ADP Non-Farm Payrolls. Volatility is already on the rise, and is set to further advance next week. The action in the euro-zone becomes serious on Wednesday as well, with the release of German CPI.
- US housing numbers slip: US housing numbers were dismal on Monday. Pending Home Sales came in at -1.1% in June, the worst reading we’ve seen in 2014 from the key housing indicator. The reading was much worse than anticipated, as the estimate stood at -0.2%. Housing numbers were all over the map last week, as Existing Home Sales exceeded expectations, while New Home Sales softened last month.
- Geo-politics concerns continue: The tensions about the downing of MH17 are rising, as fighting continues in eastern Ukraine between pro-Russian separatists and Ukrainian forces. The EU is preparing to impose tough sanctions against Russia, which could be met with counter-sanctions and weigh on the EZ recovery. In the Middle East, the war in Gaza intensifies with more casualties on both sides as numerous ceasefires have been brokered and broken. Riots have also spread to the West Bank.
- Mixed German data: Soft German data continues to worry the markets. The weak business confidence data from IFO contradicts the upbeat purchasing managers’ indices coming from the euro-zone’s powerhouse. On Tuesday, German Import Prices posted a gain of 0.2%, which was the best showing in 2014. On the inflation front, Germany has not been immune to Eurozone inflation woes, and we’ll get a look at German Preliminary CPI on Wednesday, with the markets anticipating a weak gain. In general, it seems that Germany cannot carry the euro-zone on its own and a struggling German economy does not bode well for the shaky euro.
More:Â EURUSD: Vulnerable, Targets Further Downside With Caution
