EUR/USD Forecast: Euro could struggle to clear 1.0930-1.0935 hurdle
- EUR/USD gained traction and recovered above 1.0900 early Tuesday.
- Strong resistance seems to have formed in the 1.0930-1.0935 region.
- Risk perception could impact the pair's action in the second half of the day.
After posting marginal losses on Monday, EUR/USD benefited from the renewed US Dollar (USD) weakness and climbed above 1.0900 in the early trading hours of the European session on Tuesday. The pair, however, could have a difficult time clearing the 1.0930-1.0935 resistance area unless there is a noticeable improvement in risk mood later in the day.
Euro price today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.29% | -0.26% | -0.14% | -0.49% | -0.47% | -0.56% | -0.32% | |
| EUR | 0.29% | 0.02% | 0.15% | -0.19% | -0.18% | -0.26% | -0.03% | |
| GBP | 0.26% | -0.02% | 0.12% | -0.23% | -0.21% | -0.29% | -0.06% | |
| CAD | 0.14% | -0.14% | -0.12% | -0.34% | -0.34% | -0.42% | -0.18% | |
| AUD | 0.48% | 0.19% | 0.22% | 0.33% | 0.01% | -0.07% | 0.17% | |
| JPY | 0.48% | 0.08% | 0.13% | 0.27% | -0.05% | -0.13% | 0.09% | |
| NZD | 0.54% | 0.27% | 0.29% | 0.42% | 0.07% | 0.08% | 0.23% | |
| CHF | 0.32% | 0.03% | 0.05% | 0.18% | -0.17% | -0.15% | -0.24% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Bank of Japan (BoJ) Governor Kazuo Ueda's relatively hawkish comments following the BoJ's decision to leave the policy settings unchanged triggered a sharp decline in USD/JPY, suggesting that the Japanese Yen attracted capital outflows out of the USD. Although the renewed USD weakness helped EUR/USD push higher, EUR/JPY also came under bearish pressure and made it difficult for EUR/USD to gather further bullish momentum.
The European Commission will release the preliminary Consumer Confidence data for January later in the day, which is unlikely to impact the Euro's valuation in a noticeable way.
The US economic docket will not feature any high-tier data releases. Hence, investors will pay close attention to risk perception.
Wall Street's main indexes closed modestly higher following a bullish opening on Monday. Early Tuesday, US stock index futures trade mixed. In case risk flows start to dominate the action in the second half of the day, the USD could struggle to find demand.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart climbed above 50 early Tuesday. EUR/USD faces strong resistance in the 1.0930-1.0935 region, where the 100- and 200-period Simple Moving Averages (SMA) are located, ahead of 1.0960 (Fibonacci 23.6% retracement of the latest uptrend) and 1.1000 (psychological level, static level).
Looking south, supports could be seen at 1.0860-1.0850 (Fibonacci 38.2% retracement, static level), 1.0800 (psychological level, static level) and 1.0780 (Fibonacci 50% retracement).
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Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
