EUR/USD Current price: 1.1804
- The common currency found demand on dollar's weakness.
- EU core inflation disappoints, down 0.1% in the month.
The EUR/USD pair is up for the day as the greenback was unable to extend its last week's gains, with the pair trimming in thin Monday's trading all of Friday's losses. European currencies are the best performers on the back of dollar's weakness, and the common currency is up in spite of disappointing EU data. Inflation for the whole region was up 0.1% in November, with the annual reading resulting at 1.5%, both matching the previous and the expected figures. The core readings, however, were worst-than-expected with the monthly figure down by 0.1% in the month, and the year-on-year reading up by 0.9%, against the expected 1.0%. There were no macroeconomic news in the US, with the main theme there being the tax reform. Republicans from the House and the Senate agreed on Friday on a final version of the bill that is expected to pass the Congress this week. Stocks rally to record highs on the news, but dollar bulls remained side-lined. This Tuesday, the macroeconomic calendar will remain light, with the EU releasing construction figures, and the US November housing data.
The pair maintains a neutral stance from a technical point of view, as in the 4 hours chart, the price continues hovering around horizontal moving averages, while the price currently stands around the 38.2% retracement of this month's decline. Technical indicators in the mentioned chart have entered positive territory, with the Momentum heading higher, but the RSI losing strength around 55. The range defined in the previous two weeks has it base around 1.1715 and the top in the 1.1870 price zone. A clear break of any of those extremes is required to see some directional strength, something quite unlikely to be trigger by macroeconomic releases this week.
Support levels: 1.1750 1.1715 1.1660
Resistance levels: 1.1830 1.1870 1.1900
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.