EUR/USD side-lined near 1.1750 amid lack of fresh drivers

The EUR/USD pair kicked-off the week on a weaker footing, and now remains better offered near the mid-point of 1.17 handle amid persistent demand for the US dollar across the board.

EUR/USD keeps range near 5-DMA at 1.1753

The spot extends its Asian consolidation box into Europe, moving back and forth in a 15-pips tight range amid a lack of fresh economic drivers, while markets remain wary ahead of the Jackson Hole Symposium, which will see a bevy of global central bankers up on the rostrum.

Heading into Europe, the US dollar is seen regaining poise versus its main competitors, as the European traders hit their desks and prefer to hold the US currency, responding to the news of controversial Trump adviser Bannon’s resignation.  

Meanwhile, the common currency also remains under pressure, in light of last week’s ECB minutes, which showed that the members of the Council were worried over the exchange rate appreciation and felt that accommodation was needed in either direction.

In the day ahead, in absence of key catalysts, the major will eye the German Buba monthly report and sentiment on the European markets for fresh impetus.

EUR/USD Technical Set-up  

Analysts at BBH noted: “The downtrend line off the recent high comes in a little below $1.18 at the start of the new week.  The low for the move is near $1.1660 and was seen after the record of the ECB meeting expressed concern about the "possible" euro "overshoot" in the "future." However, the euro did not close below $1.1680, the 38.2% retracement of the leg up in the euro that began in early July.”