EUR/USD Current Price: 1.2134
- Brexit-related headlines trigger demand for safe-haven assets.
- German’s Industrial Production rose by 3.2% MoM in October.
- EUR/USD recovering its bullish potential after correcting extreme overbought conditions.
The EUR/USD pair extended its decline this Monday to 1.2078, as the dollar surged on risk aversion. News that UK Prime Minister Boris Johnson is willing to turn his back to the EU and leave the negotiation table spurred the dismal sentiment. The pair bounced from the mentioned low as demand for the dollar remains weak, with EUR/USD heading into the US opening, trading around 1.2130. Fears cooled down on market talks suggesting that Brexit trade talks could continue until Wednesday.
Germany published October Industrial Production, which provided support to the shared currency as it rose by 3.2% MoM, beating expectations. The US session will be light in terms of macroeconomic data, as the country will only release October Consumer Credit Change.
EUR/USD short-term technical outlook
The EUR/USD pair has corrected oversold conditions in the short-term and is slowly recovering its bullish potential. The 4-hour chart shows that the price is back above a bullish 20 SMA, while technical indicators are bouncing from around their midlines. At the time being, the bullish potential seems limited, with risk-averse headlines providing opportunities to buy at lower levels.
Support levels: 1.2110 1.2070 1.2020
Resistance levels: 1.2175 1.2230 1.2280
View Live Chart for the EUR/USD
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
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.