EUR/USD Current Price: 1.0639
- New coronavirus-related concerns undermine the market mood in thin trading.
- EU November M3 Money Supply rose 4.8% YoY, beating expectations.
- EUR/USD is losing upward momentum, but bears are nowhere to be found.
The EUR/USD pair keeps trading within familiar levels on Thursday, bottoming during the Asian session at 1.0605 and peaking during European hours at 1.0657. Trading remains choppy amid a scarce economic calendar and due to the winter holidays in the Northern Hemisphere, although the market sentiment continues to deteriorate. The latest news from China does not seem encouraging as the number of coronavirus cases has multiplied while the government moves away from its zero-covid policy.
Italy reported that roughly 50% of the passengers of two flights arriving in Milan on Wednesday tested positive for COVID-19, and several western nations rushed to impose control on Chinese travellers, fearing a new strain could break the delicate balance in which they are living. It is still to be seen whether these latest developments will have long-lasting effects on growth and inflation. Meanwhile, China’s State Council announced it would adjust import and export tariffs of some goods starting January 1, detailing raising export tariffs on aluminium and aluminium alloys.
On the data front, the EU published November M3 Money Supply, which rose 4.8% YoY, beating expectations. The US will later release Initial Jobless Claims for the week ended December 23.
EUR/USD short-term technical outlook
The EUR/USD pair trades around 1.0640, with the picture unchanged from the previous updates. Technical readings in the daily chart show that the pair has lost upward momentum, although the risk remains skewed to the upside. In the mentioned time frame, the pair develops above all of its moving averages, with a bullish 20 SMA providing dynamic support at around 1.0600. The longer moving averages, in the meantime, lack directional strength far below the shorter one. Finally, technical indicators remain flat, with the Momentum just above its midline but the Relative Strength Index (RSI) holding near overbought readings.
In the near term, and according to the 4-hour chart, the pair retains the neutral stance. EUR/USD develops above a mildly bullish 20 SMA, while the 100 SMA heads nowhere below it. The 200 SMA, however, maintains its bullish slope far below the latter. Technical indicators have turned south but lack enough strength and are stuck to their midlines, reflecting the absence of speculative interest.
Support levels: 1.0610 1.0580 1.0535
Resistance levels: 1.0660 1.0695 1.0740
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 consolidates recovery gains above 1.0650
EUR/USD stays in a consolidation phase following Wednesday's rebound and trades in a narrow range above 1.0650. The improving risk mood doesn't allow the US Dollar to gather strength as markets await mid-tier data releases.
GBP/USD clings to moderate gains above 1.2450
GBP/USD is clinging to recovery gains above 1.2450 in European trading on Thursday. The pair stays supported by a sustained US Dollar weakness alongside retreating US Treasury bond yields. Fed policymakers will speak later in the day.
Gold shines amid fears of fresh escalation in Middle East tensions
Gold trades in positive territory near $2,380 on Thursday after posting losses on Wednesday. The precious metal holds gains amid fears over tensions in the Middle East further escalating, with Israel responding to Iran's attack over the weekend.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.