EUR/USD Current price: 1.1329
- Fed’s chair Powell testified again on the CARES act before a different Senate Commission.
- The US ADP report showed that the private sector added 543K new job positions in November.
- EUR/USD holding above the 1.1300 level, but technical readings hint at a new leg south.
The EUR/USD pair has shed some ground on Wednesday but held above the 1.1300 figure. The market’s mood improved as investors digested the latest from the US Federal Reserve, as chief Jerome Powell hinted at speeding up tapering starting as soon as December. Powell testified again before a different Senate Commission and repeated that inflation has spread more broadly and that the risk of persistent inflation has risen. However, he also said that, while they need to remove the word “transitory,” he still believes inflation will come down “meaningfully” in the second half of 2022.
Meanwhile, the WHO noted that early indications point that cases related to the Omicron coronavirus strain are mild, adding that vaccines still offer protection against the new variant.
On the data front, Germany released October Retail Sales, which were down by 2.9% YoY, worst than the -2% expected. Also, Markit published the final readings of its November Manufacturing PMIs. The German reading was downwardly revised to 57.4, while the EU figure was confirmed at 58.4, below the preliminary estimate of 58.6.
The US published the November ADP report, which showed that the private sector added 543K positions in the month, better than the 525K expected. The official ISM Manufacturing PMI improved to 61.1 in November, beating expectations. On Thursday, the EU will release the October Producer Price Index while the US will publish November Challenger Job Cuts and Initial Jobless Claims for the week ended November 26.
EUR/USD short-term technical outlook
The EUR/USD pair has bottomed intraday around the 23.6% retracement of its November slide at 1.1305, the immediate support level. The daily chart indicates that the latest advance may have been corrective, as the rally stalled around the next Fibonacci retracement at around 1.1380, where it also has a firmly bearish 20 SMA. At the same time, technical indicators have continued to correct oversold conditions but currently turned flat within negative levels, indicating limited buying interest.
The 4-hour chart offers a neutral-to-bullish stance, as EUR/USD is finding support around a bullish 20 SMA but is unable to advance beyond a mildly bearish 100 SMA. Meanwhile, technical indicators remain within positive levels with uneven strength. The pair can gain bearish momentum on a clear break below 1.1305, while bulls may have a chance if the pair rallies beyond 1.1380.
Support levels: 1.1305 1.1260 1.1210
Resistance levels: 1.1380 1.1425 1.1470
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
Editors’ Picks
EUR/USD stays below 1.0700 after US data
EUR/USD stays in a consolidation phase below 1.0700 in the early American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold trades on the back foot, manages to hold above $2,300
Gold struggles to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to reverse its direction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.