EUR/USD Forecast: Consolidative phase continues around 1.0600

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0618

German and US Consumer Confidence improved, according to fresh updates.
The US will publish the final estimate of its Q3 GDP on Thursday.
EUR/USD trades with a near-term neutral stance as bulls retain control.

The EUR/USD pair held within familiar levels on Wednesday, losing ground through American trading hours and ending the day around the 1.0600 mark. The US Dollar benefited from an upbeat report, as CB Consumer Confidence increased in December by more than anticipated, with the index surging to 108.3 from an upwardly revised 101.4 in November. The index is now at its highest level since April 2022.

Earlier in the day, Germany published the Gfk Consumer Confidence Survey, which improved to -37.8 in January from -40.1 in January. Also, the United States published Mortgage Applications for the week ended December 16, up 0.9%, while Existing Home Sales declined by 7.7% in November.

Thursday will bring some reports of interest as the US will unveil the final estimate o its Q3 Gross Domestic Product, expected to confirm an annualized pace of growth of 2.9%. The country will also publish Initial Jobless Claims for the week ended December 16 and Q3 PCE inflation.

EUR/USD short-term technical outlook

The daily chart for the EUR/USD pair shows demand has eased, but technical readings are far from suggesting an upcoming decline. The pair holds above all of its moving averages, with the 20 SMA advancing well above the longer ones. The Momentum indicator turned south but is barely holding above its 100 SMA. The Relative Strength Index (RSI), on the other hand, keeps consolidating near overbought readings.

The 4-hour chart offers a neutral stance. EUR/USD seesaws for a third consecutive day around a mildly bearish 20 SMA, while the longer moving averages keep heading north below it. Technical indicators, in the meantime, turned marginally lower within neutral levels. The pair could shed some more ground in the near term, particularly if it breaks below the 1.0580 level, but a steeper decline is out of the picture for now.

Support levels: 1.0580 1.0535 1.0480

Resistance levels: 1.0650 1.0695 1.0740

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 weakens to near 1.1900 as traders eye US data

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.