EUR/USD Forecast: Bulls to challenge ECB’s 1.2000 line in the sand

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1917

Mixed US data put the greenback under pressure ahead of a long weekend.
Optimism decreased with equities ending the day mixed.
EUR/USD pressuring monthly highs and poised to extend its advance.

The EUR/USD pair advanced on Wednesday, reaching a fresh 2-month high of 1.1929 during the European session, to later refresh it in the US session. Optimism prevailed throughout the first half of the day but eased ahead of the American opening on the back of Brexit concerns. The greenback remained under pressure after the release of a batch of mixed US data, as the country will be off for the long Thanksgiving holiday.

Durable Goods Orders were up 1.3% in October, beating expectations, while the core reading printed at 0.7% against the 0.5% forecast. Q3 economic growth was confirmed at 33.1%, while Initial Jobless Claims for the week ended November 20 came in worse than expected, up to 778K. Finally, the Michigan Consumer Confidence survey was downwardly revised to 76.9 in November. The US calendar will remain empty for the rest of the week. The EU will publish money data this Thursday, while the ECB will release the Minutes of its latest meeting.

EUR/USD short-term technical outlook

The EUR/USD pair trades around 1.1914, with the risk skewed to the upside, despite the lack of bullish momentum. In the 4-hour chart, the pair is trading above a bullish 20 SMA, which advances beyond the longer ones. Technical indicators advance just modestly within positive levels. Bulls are in control as long as the price holds above 1.1880, the US session low, with scope to test the year´s high at 1.2011.

Support levels: 1.1880 1.1840 1.1790

Resistance levels: 1.1960 1.2010 1.2050

View Live Chart for the EUR/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.