EUR/USD Current Price: 1.0909
- EU Industrial Production fell in December, limiting the bullish potential of the EUR.
- US Federal Reserve Chair Powell to testify for a second consecutive day.
- EUR/USD neutral-to-bearish in the short-term, 1.0878 critical support.
The market mood continues to improve despite lingering coronavirus concerns, yet the shared currency seems immune to renewed demand for high-yielding assets. The EUR/USD pair hovers around 1.0910 for a second consecutive day, meeting sellers in the 1.0920 price zone. EU data came in worse-than-anticipated, adding pressure on the Euro. December Industrial Production was down by 2.1% monthly basis, and by 4.1% when compared to a year earlier.
Meanwhile, the coronavirus keeps taking its deadly toll, although inside China. The number of deceases has surpassed 1,100 while there are over 44,000 cases, most of them within the country. Equities, however, trade firmly in the green, while government bond yields recover, reflecting the upbeat sentiment.
The US published MBA Mortgage Applications for the week ended February 7, which were up by 1.1%, after advancing 5.0% in the previous week. Federal Reserve Chair’s Powell will testify for a second day before the Congress, although given that he will repeat his Tuesday’s statement, the market is expecting it to be a non-event.
EUR/USD short-term technical outlook
The EUR/USD pair is unable to attract speculative interest ever since the week started, offering a neutral stance. Still, and given that the pair is near yearly lows, the risk is skewed to the downside. In the 4-hour chart, it continues to develop below firmly bearish moving averages, with the 20 SMA at around 1.0930. The Momentum indicator eases within negative levels while the RSI stabilized around 34, all of which supports the bearish case. A critical support level comes at 1.0878, the low from 2019.
Support levels: 1.0875 1.0840 1.0810
Resistance levels: 1.0930 1.0965 1.1000
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.