e

The EUR/USD pair recovered in one day  almost all what it lost in the previous four weeks, following, and maintained its bullish tone this Friday, despite the release of US positive employment data for November. 
The shocking decision made by the ECB last Thursday has not only disappointed investors, but also generate another bout of uncertainty. Mario Draghi fell short of market expectations, by cutting further into negative territory the deposit rates, but maintaining the monthly amount of bond purchases intact, when the market had largely priced in a 10/20B extension.

View the Live chart of the EUR/USD

From a technical perspective, the pair is now favored higher into next week, as it has broken, and found buyers on pullbacks, to the 38.2% retracement of the October/November decline around 1.0880. In the same chart, the technical indicators are stabilizing well above their mid-lines, still in their way to neutralize the effects of a 480 daily rally. Also, the 100 and 200 DMAs converge in the 1.1080 region, whilst the 61,8% retracement of the mentioned decline stands at 1.1120, making of the region a critical resistance area, and where selling interest is expected to resume. 

Weekly basis, the pair remains below its 20 SMA, while the technical indicators have bounced sharply from oversold readings, but remain in negative territory, suggesting the current movement is corrective. Nevertheless, and advance beyond 1.1120 will likely confirm a bullish continuation in term. 

The main support is now 1.0830, and a break below it should expose the pair to a test of the 1.0720 region, whilst below this last 1.0660 comes next. 


Latest updates on the EUR/USD Forecast

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD stays near 1.0800 after upbeat US data

EUR/USD stays near 1.0800 after upbeat US data

EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.

EUR/USD News

GBP/USD stays in daily range above 1.2600

GBP/USD stays in daily range above 1.2600

GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.

GBP/USD News

Gold pulls away from daily highs, holds above $2,200

Gold pulls away from daily highs, holds above $2,200

Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.

Gold News

XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC

XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC

XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase. 

Read more

Portfolio rebalancing and reflation trades emerge into Q2

Portfolio rebalancing and reflation trades emerge into Q2

Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.

Read more

Majors

Cryptocurrencies

Signatures