EUR/USD analysis: buyers to re-surge on dips

EUR/USD Current price: 1.2029

  • EUR strong and bullish despite ongoing correction.
  • US data to set the tone for the US session, FOMC Minutes will add little new.

A modest recovery of the greenback early London resulted in the EUR/USD pair falling to 1.2010 its lowest for this week, but currently trades some 20 pips above the level, as demand for the US currency remains well-limited. The pair started easing in a quiet Asian session, with no specific reason behind the decline, which anyway has been quite irrelevant in terms of trend. The only relevant news coming from the EU was German unemployment, with the rate falling to a record low of 5.5% as the number of unemployed people decreased by 29K, beating expectations of -12K. The market is now waiting for the US official December manufacturing PMI, expected at 58.1 from the previous 58.2 while nearing the end of the US session, the Fed will release the Minutes of its latest meeting.

The 4 hours chart for the pair shows that it met buying interest around a bullish 20 SMA, as the Momentum indicator keeps heading lower within positive territory, but the RSI pared its decline and attempts to recover around 63, indicating that selling interest is still limited. A positive surprise from US upcoming figures could boost the greenback temporarily, but as mentioned above, the dominant bullish trend remains firmly in place, which means that speculative interest will be looking to buy on retracements.

Support levels:   1.2000 1.1960 1.1920

Resistance levels: 1.2065 1.2100 1.2140

View Live Chart for the EUR/USD

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