- EUR/USD edged higher after closing the previous week above 1.0900.
- 1.0950 aligns as the next resistance for the pair.
- The risk perception could impact EUR/USD's action in the absence of high-impact data releases.
EUR/USD gained more than 2% in the previous week and closed above 1.0900. The pair continued to edge higher early Monday and touched its highest level since late August above 1.0930.
The persistent selling pressure surrounding the US Dollar (USD) following the soft inflation readings for October fueled EUR/USD's impressive rally last week. At the beginning of the new week, the USD struggles to stage a rebound in the absence of high-tier macroeconomic data releases.
Following a bearish action in the Asian trading hours, US stock index futures turned positive for the day in the European morning and the Euro Stoxx 50 opened flat. In case risk flows start to dominate the action in financial markets in the second half of the day, the USD could stay on the back foot and help EUR/USD stretch higher.
On Tuesday, the Federal Reserve will release the minutes of the October 31-November 1 policy meeting. On Wednesday, the US economic docket will feature Durable Goods Orders data for October and the weekly Initial Jobless Claims ahead of the Thanksgiving Day holiday.
EUR/USD Technical Analysis
1.0950 (Fibonacci 61.8% retracement of the July-October downtrend) aligns as immediate resistance for EUR/USD. Meanwhile, the Relative Strength Index (RSI) indicator on the 4-hour chart climbed back above 70, pointing to overbought conditions. In case the pair fails to clear that hurdle and stages a technical correction, 1.0900 (psychological level, static level) could be seen as first support before 1.0850 (Fibonacci 50% retracement) and 1.0800 (50-period Simple Moving Average).
In case EUR/USD rises above 1.0950 and confirms that level as support, bulls could target 1.1000 (psychological level) and 1.1065 (August 10 high).
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 bounces back, trades above 1.0860
EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future.
GBP/USD turns north ahead of the weekly close, approaches 1.2700
GBP/USD extended its rebound from near 1.2600 and is approaching 1.2700 on the back of a weaker US Dollar. The Greenback accelerated to the downside following comments from Fed’s Powell.
Gold resumes advance and approaches record highs
Gold remains near record highs and achieved its highest monthly close ever in November. Global bond yields continue to decline as inflation further cools, supporting the upside in XAU/USD. With central banks expected to remain on hold, the focus will be US labor market data.
Solana likely to extend gains as DeFi airdrop season could boost user base
Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report. SOL price extends rally, yielding nearly 4% daily gains.
Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside
TSLA stock sinks three days in a row despite Cybertruck unveiling. Analysts conclude that Cybertruck will find it difficult to turn a profit. TSLA stock is the midst of forming a bearish Three Black Crows pattern on the daily chart.