- EUR/USD stays below 1.0900 after posting losses for the second consecutive day on Tuesday.
- PMI surveys from Germany, the Eurozone and the US will be featured in the economic calendar.
- Investors could refrain from taking large positions ahead of the ECB policy announcements.
EUR/USD turned south and touched its lowest level since mid-December at 1.0820 during the American trading hours on Tuesday. Although the pair managed to recover above 1.0850 early Wednesday, the technical outlook is yet to point to a build-up of bullish momentum.
Euro price this week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the weakest against the Japanese Yen.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.15% | -0.08% | 0.14% | 0.16% | -0.25% | 0.07% | -0.08% | |
| EUR | -0.15% | -0.24% | -0.01% | 0.00% | -0.41% | -0.09% | -0.23% | |
| GBP | 0.09% | 0.23% | 0.21% | 0.25% | -0.16% | 0.16% | 0.01% | |
| CAD | -0.14% | 0.02% | -0.22% | 0.03% | -0.38% | -0.06% | -0.21% | |
| AUD | -0.16% | -0.01% | -0.25% | -0.01% | -0.45% | -0.09% | -0.23% | |
| JPY | 0.24% | 0.39% | 0.20% | 0.38% | 0.40% | 0.33% | 0.16% | |
| NZD | -0.08% | 0.06% | -0.18% | 0.04% | 0.09% | -0.34% | -0.15% | |
| CHF | 0.08% | 0.22% | -0.01% | 0.21% | 0.23% | -0.18% | 0.14% |
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).
The risk-averse market atmosphere helped the US Dollar (USD) stay resilient against its rivals on Tuesday, despite the bearish action seen in the early European morning. US stock index futures trade in positive territory early Wednesday and make it difficult for the USD to gather strength.
Preliminary January Manufacturing and Services PMI surveys from Germany, the Eurozone and the US will be featured in the economic calendar on Wednesday. The private sector's economic activity both in Germany and the Euro area is forecast to show a contraction in early January. In case PMI surveys highlight the relatively healthier state the US economy is in, EUR/USD could have a hard time gaining traction. However, an improving risk mood could cap the USD's upside and help the pair limit its losses.
Nevertheless, investors are likely to refrain from taking large positions ahead of the European Central Bank's (ECB) monetary policy announcements on Thursday. Moreover, the US Bureau of Economic Analysis will release its first estimate of the fourth-quarter Gross Domestic Product growth as well.
EUR/USD Technical Analysis
EUR/USD corrected higher early Wednesday but is yet to climb above the 20-period Simple Moving Average (SMA) on the 4-hour chart. Additionally, the Relative Strength Index (RSI) indicator stays below 50, suggesting that the pair is struggling to gather bullish momentum.
On the upside, 1.0900 (psychological level) aligns as first resistance before 1.0930 (100-period SMA, 200-period SMA) and 1.0960 (Fibonacci 23.6% retracement of the latest uptrend).
Interim support seems to have formed at 1.0830 (static level) before 1.0800 (psychological level) and 1.0780 (Fibonacci 50% retracement).
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 reaches fresh multi-year highs with Powell's testimony
The EUR/USD trades near fresh 2025 highs in the 1.1640 price zone as Federal Reserve Chairman testifies before Congress. His optimistic words fuel risk appetite. The market's mood improved in Asia following news of a ceasefire in the Middle East.
GBP/USD resumes run beyond 1.3600
GBP/USD trades well above the 1.3600 mark in the American session, following comments from the BoE and the Fed's heads. Diminishing recession-related concerns are undermining the sentiment, despite persistent uncertainty about inflation. Hopes about easing Middle East tensions add to the upbeat mood.
Gold nears $3,300 as Fed Powell testifies before Congress
Gold price maintains its heavily offered tone early in the American session, approaching the $3,300 threshold on news indicating easing Middle East tensions. The ceasefire between Iran and Israel revived risk-on flows, to the detriment of the bright metal. Fed's Powell testimony before Congress coming up next.
Bitcoin recovers as Iran-Israel ceasefire fuels risk-on sentiment
Bitcoin price stabilizes around $105,000 on Tuesday after a 4.33% gain on Monday, driven by easing geopolitical and regulatory concerns. Global risk appetite is increasing as the ceasefire between Iran and Israel, along with the Fed's softer stance on crypto-related banking, takes hold.
Could Iran block the Strait of Hormuz? Why Oil is on edge after US strikes
As the Israel-Iran conflict reaches new heights, an old threat is coming back to haunt the markets: that of the closure of the Strait of Hormuz. This narrow arm of the sea in the Persian Gulf, wedged between Iran to the north and the United Arab Emirates and Oman to the south, is much more than a simple sea passage.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.