EUR/USD Current Price: 1.1283
- German Retail Sales unexpectedly rose 0.6% MoM in November.
- US Treasury yields extend their advances on renewed inflation concerns.
- EUR/USD is technically bearish and could soon pierce 2021 low at 1.1185.
The American dollar maintains its strength on Tuesday, extending gains against the shared currency. The EUR/USD pair fell to 1.1271, an almost two-week low, ahead of the US open. US Treasury yields keep moving north, with the 10-year note peaking for the day at 1.66%. Asian and European indexes post solid gains, underpinning US futures.
As the coronavirus Omicron strain hits the world, investors speculate the US Federal Reserve will have trouble retrieving financial support as planned. The US central bank is expected to hike rates at least twice this year, with the first hike anticipated for as soon as March, as inflation stands at multi-decade highs. At the same time, speculative interest fears the ongoing wave of coronavirus may disrupt economic progress, forcing the Fed to maintain financial support.
Germany published November Retail Sales, which were up 0.6% MoM, much better than the -0.5% expected. The US session will bring the ISM Manufacturing PMI for December, foreseen at 60.2, and November JOLTS Job Openings.
EUR/USD short-term technical outlook
The EUR/USD pair is in the red for a second consecutive day, approaching the December low at 1.1220. The 2021 low was set at 1.1185, the levels to break to confirm a steeper decline towards the 1.1000 figure. From a technical point of view, the risk is skewed to the downside.
The daily chart shows that the pair stands below a flat 20 SMA, providing intraday dynamic resistance, while the longer ones keep heading lower far above it. Technical indicators head south around their midlines, failing to confirm, at this point, a bearish extension.
In the near term, and according to the 4-hour chart, the bearish case is firmer. The pair has fallen below all of its moving averages, while technical indicators extend their declines within negative levels, maintaining their bearish slopes.
Support levels: 1.1260 1.1220 1.1185
Resistance levels: 1.1305 1.1340 1.1385
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 remains above 1.0700 amid expectations of Fed refraining from further rate hikes
EUR/USD continues to gain ground on Thursday as the prevailing positive sentiment in the market provides support for risk-sensitive currencies like the Euro. This improved risk appetite could be attributed to dovish remarks from Federal Reserve Chairman Jerome Powell on Wednesday.
GBP/USD gains traction above 1.2500, Fed keeps rates steady
GBP/USD gains traction near 1.2535 during the early Thursday. The uptick of the major pair is supported by the sharp decline of the US Dollar after the US Federal Reserve left its interest rate unchanged.
Gold needs to reclaim $2,340 for a sustained recovery
Gold price is consolidating Wednesday’s rebound in Asian trading on Thursday, as buyers await more employment and wage inflation data from the United States for fresh trading impetus. Traders also digest the US Federal Reserve interest rate decision and Chair Jerome Powell's words delivered late Wednesday.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Fed meeting: The hawkish pivot that never was, and the massive surge in the Yen
The Fed’s latest meeting is over, and the tone was more dovish than expected, but that is because the rate hike hype in the US was over-egged, and rate cut hopes had been pared back too far in recent weeks.