EUR/USD analysis: still unable to settle above 1.0600

Valeria Bednarik FXStreet

EUR/USD Current price: 1.0562

The American dollar weakened further in the Asian trading session, sending the EUR/USD up to 1.0626, a fresh weekly high, although the pair changed course mid European morning, unable to sustain gains above the 1.0600 level. There were no macroeconomic news in the EU, while in the US, data were mixed, with the number of jobs´ openings little changed in November at 5.522 million, against expectations of 5.555M and below previous 5.451M. The NFIB Business Optimism Index for November, jumped to 105.8 beating expectations and previous 98.4, the biggest confidence monthly rise since 1980 and the highest since the end of 2004.

The greenback has been generally soft in the near-term, but the long term scenario, with healthy employment, growing inflation, and the Central Bank being the only in the tightening path, continues favoring dollar's gains in the longer run. Intraday, the absence of macroeconomic releases has left majors at the goodwill of sentiment, led by stocks. With European and American equities generally up, the dollar closes higher against most of its major rivals. The EUR/USD pair fell down to 1.0550 and trades a few pips above it by the end of the US session, offering now a neutral stance in the 4 hours chart, as the price is stuck around the 23.6% retracement of its latest monthly slide and the 20 SMA, both around 1.0565, while technical indicators have turned modestly lower around their mid-lines, lacking directional momentum. A break below 1.0500 should see the pair resuming its decline, while only beyond 1.0650, December 29th high, the pair can gather some upward momentum and extend its upward corrective move up to 1.0710.

Support levels: 1.0530 1.0490 1.0445

Resistance levels: 1.0580 1.0620 1.0650

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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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