EUR/USD Current Price: 1.1111
- Dismal German data alongside encouraging US figures added pressure on the pair.
- Middle-East tensions ease after US President Trump refrained from announcing more hostilities.
- EUR/USD looking to extend its decline below the 1.1100 figure.
The American currency is the overall winner this Wednesday, up against all of its major rivals. The day began with panic and sellers rushing into safe-haven assets, as Iran attacked US military basis in Iraq, in retaliation to the killing of Major General Suleimani last week. The EUR/USD pair appreciated just modestly to hit a daily high of 1.1167, but it was all downhill from there. Sentiment improved as authorities from both countries hinted a deescalation of hostilities, with US President Trump offering a speech post-London close. Among other things, he said that Iran appears to be standing down, announced more sanctions on the country, but no other retaliation, pouring cold water on chances of more hostilities.
Macroeconomic data also weighed on the pair, as German Factory Orders plummeted in November, down by 1.3% MoM and by 6.5% YoY, well below the market’s expectations of a bounce. The US ADP survey showed that the private sector added 202K new jobs in December, largely surpassing the 160K forecast, and hinting a solid Nonfarm Payroll report, to be out later this week.
On Thursday, Germany will take centre stage, as it will publish November Trade Balance and Industrial Production, this last seen up by 0.7% MoM and down by 3.8% YoY. The US calendar will be lighter as it will only release the usual weekly unemployment figures.
EUR/USD short-term technical outlook
The EUR/USD pair settled at around 1.1110, below the 61.8% retracement of its latest December rally and barely above its daily low. The pair is technically bearish according to the 4-hour chart, as it is comfortable below its 20 and 100 SMA, with the shortest accelerating its decline. The 200 SMA, in the meantime, provides dynamic support around the 1.1100 figure. Technical indicators indicate an increasing bearish pressure, maintaining their bearish slopes near oversold readings.
Support levels: 1.1100 1.1065 1.1020
Resistance levels: 1.1135 1.1160 1.1200
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 extends losses on dovish remarks from ECB members, trades near 1.0780
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD trades sideways above 1.2600 amid quiet session
The GBP/USD pair trades sideways around 1.2622 during the early Friday. The market is likely to be mute in light trading on Good Friday. Later in the day, the US Core Personal Consumption Expenditures Price Index will be released.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.