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Euro Indifferent Despite Upbeat Macro Data

Published 12/07/2021, 05:06 AM
EUR/USD
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Overall, it comes as no surprise that the euro is flat. After all, the macroeconomic calendar is empty. Of course, the eurozone saw the release of the construction PMI that increased to 53.3 versus 51.2. However, this data is definitely not of top priority for the market as it produces no effect.

EZ construction PMI.

Likewise, the market is unlikely to show any reaction to the 3rd estimate of Q3 GDP in the eurozone. The economy was expected to slow down to 3.7% from 14.2%. But the actual number was 2.2%. Such a significant fall could have spooked investors, but the third estimate came in line with the previous two. Therefore, the results will not have any influence on the market. In other words, the market is expected to be at a standstill today.

EZ Q3 GDP.

The EUR/USD pair is hovering around 1.1300 despite speculative interest. Uncertainty among traders could lead to a prolonged flat market. The Relative Strength Index (RSI) is near 50 on the hourly chart. The indicator is moving within the range of 30/50.

According to the daily chart, the downtrend continues. A correction and a flat occurred within the trend.

Outlook

Despite a flat market, sentiment remains bearish. Therefore, the quote is expected to head towards the range of 1.1160/1.1180. At the same time, the pair may well extend its flat movement by 70/90 pips amid uncertainty among traders.

In terms of complex indicator analysis, there is a variable signal for short-term and intraday trading. In the intermediate terms, technical indicators are giving a sell signal.EUR/USD 1-hour chart.

InstaForex Group

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