EUR/USD holds in range as US government reopening hopes lift mood

• The Euro keeps moving sideways near the mid-range of the 1.1500s.
• Hopes of an end to the US government closure have provided some support to the US Dollar.
• German economic sentiment and US private employment data are likely to drive markets today.

EUR/USD is showing a moderate decline, although it remains within the previous days' ranges, trading above 1.1550 at the time of writing on Tuesday. A deal to end the US government shutdown has given the US Dollar a fresh push, but the positive market sentiment is keeping the pair afloat.

The US Senate approved a funding package on Monday that would allow for the reopening of the government after a 35-day closure, its longest in history. The law will now be sent to Congress, where it is expected to be approved as early as Wednesday to be signed by US President Donald Trump.

In Tuesday's Eurozone economic calendar, European Central Bank (ECB) President Christine Lagarde's comments and the German ZEW Survey - Economic Sentiment Index are likely to drive markets, while in the US, the focus will be on the ADP 4-week employment report.

Daily digest market movers: US Dollar ticks up on government funding deal

• News of a deal to reopen the US government has given a marginal push to the Dollar against a basket of its main currency peers, but they have also lifted market sentiment, providing support to risk-related assets like the Euro. This leaves the EUR/USD pair trading sideways without a clear bias.
• Later on the day, the German ZEW Survey - Economic Sentiment data is expected to show a mild improvement to a 40 reading in November, from 39.3 in October. The Current Situation index is expected to have improved to -77.5 in November from -80 in the previous month. Still levels well below the historic averages, which are not expected to provide significant support to the Euro.
• During the US session, the focus will be on the US ADP Employment Change 4-week average. Last week, a better-than-expected 42K net increase in employment eased some of the worst fears of a sharp deterioration of the US Labour market.
• On Monday, a batch of Federal Reserve (Fed) speakers reflected the divergences among the committee, with Governor Stephen Miran calling for further interest rate cuts, while St. Louis Fed President Alberto Mussalem and San Francisco Fed President Mary Daly are showing a more cautious view on monetary policy.

Technical Analysis: EUR/USD consolidating between 1.1540 and 1.1580

The EUR/USD pair is in a consolidation phase, following the recovery from 1.1470 lows last week. Bulls have been capped at the 1.1580 area, while downside attempts remain contained above 1.1540. The 4-hour Relative Strength Index (RSI) is flattening near the 50 level, highlighting a neutral market.

Bulls would have to breach the 1.1580-1.1590 area (November 7, 10 highs) to shift the focus towards the resistance area around 1.1615, where the October 27 low meets a trendline resistance from early October highs. Further up, the target is the October 28 and 29 highs near the area of 1.1670.

Downsie attempts, on the other hand, have found support at the 1.1530-1.1540 area (near November 7,10 lows) ahead of the 1.1500 psychological level and the key support at the November 5 low around 1.1470.