EUR/USD retreats towards 1.1700, teasing monthly low for third straight day. Market sentiment improves over Evergrande, US debt limit extension. ECB policymakers cite inflation risks. Fed remains in focus, as it is expected to provide hints on tapering timing.
EUR/USD trades around 1.1730, below the 61.8% retracement of its latest daily advance at 1.1755, the immediate resistance level. The near-term perspective is neutral-to-bearish, as the pair is currently hovering around a bearish 20 SMA, which keeps heading lower below the longer ones. The Momentum indicator managed to cross into positive territory but lacks strength, while the RSI indicator consolidates around 43. Bears will likely add on a break below 1.1700.
Support levels: 1.1700 1.1660 1.1620
Resistance levels: 1.1755 1.1780 1.1820
