EUR/USD analysis: bullish momentum accelerates post-ECB's Minutes, soft US data

Valeria Bednarik FXStreet

EUR/USD Current price: 1.2024

ECB Minutes revived confidence on the future of the EU.
US December PPI fell in December by 0.1%.

The common currency got a nice boost from the release of ECB's Meeting Minutes, surging to a fresh 3-day high of 1.2026 against the greenback, later extending it up to 1.2034 on US data miss. The document released by the European Central Bank reminded investors how confident policymakers are about the economic recovery, with no dovish in-between lines. US Producer Price index rose by less-than-expected in December, also below November levels, up yearly basis by 2.6% from previous 3.1%. Monthly basis, inflation at factory levels fell by 0.1%. Also pressuring the American currency was a bad headline in weekly unemployment claims that surged to 261K in the week ended December 5th, well above the 245K expected. The dollar is being once again dumped across the board, and will still have to face Fed's Dudley speech.

The EUR/USD pair now struggles with the 1.2030 level, holding above Wednesday's high and short-term bullish, according to technical readings in the 4 hours chart, as the pair bounced once again from a bullish 100 SMA, while technical indicators again head north vertically, at a one-week high. The pair has now an immediate resistance in the 1.2065 price zone, en route to 1.2100, a major static resistance level. A break above it should lead to a continued advance with the market then eyeing the 1.2260 level the next long-term resistance.

Support levels: 1.2030 1.2000 1.1955

Resistance levels: 1.2065 1.2095 1.2130

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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