EUR/USD advances on a better market mood, critical resistance at 1.1810

EUR/USD is recovering towards 1.1800 after US President Trump tweeted his support for economic measures, boosting the market’s mood. Later in the day, FOMC Meeting’s Minute is not expected to include surprises on monetary policy, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“US President Trump announced he cancelled negotiations on a coronavirus aid package with Democrats until after the election. The headline spurred risk aversion, in detriment of equities and benefiting the safe-haven dollar. The market’s mood improved later, as the same Trump changed his tone and begun tweeting his support to multiple aid measures, including checks to all Americans, aiding airlines and payroll protection.”

“Germany published August Industrial Production, which declined 0.2% MoM and was down 9.6% when compared to a year earlier, missing the market’s expectations. The US will offer the Minutes of the latest FOMC Meeting, not expected to be a shocker.”

“EUR/USD is mildly bullish in the short-term, although still facing a tough resistance area in the 1.1800/10 price zone. The 4-hour chart shows that the pair is advancing above it is 20 and 100 SMA, with the shortest advancing above the larger one. The 200 SMA continues to provide resistance around the mentioned area, while technical indicators bounced from around their midlines, maintaining their bullish slopes.”