EUR/USD Forecast: Investors stay away, risk skewed to the downside

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1022

German December Consumer Confidence Survey beat expectations with 9.7.
US CB Consumer Confidence foreseen at 126.9 up from 125.9 previously.
EUR/USD barely holding above 1.1000, critical support at 1.0990.

The EUR/USD pair continues trading uneventfully just above the 1.1000 level, unable to attract investors. Sentiment seesawed alongside US-China trade-related headlines, with investors cheering Chinese latest announcements early Asia, but with enthusiasm later fading amid no clear signs of progress. Fed Chairman Jerome Powell was on the wires earlier today and said that the central bank is unlikely to move rates anytime soon. Nevertheless, he said he sees the US economy as "glass more than half full."

Germany released the December GFK Consumer Confidence Survey, which beat expectations with 9.7, although it failed to trigger some action. The US has just released the October Trade Balance, with the deficit down to 66.53B, and the preliminary estimate of October Wholesales Inventories, which increased by 0.2%. Later in the day, the country will release New Home Sales, seen up by 1.1% in October, and the CB Consumer Confidence, seen at 126.9 from 125.9 previously.

EUR/USD short-term technical outlook

The EUR/USD pair is currently trading at around 1.1020, technically bearish according to the 4-hour chart, as the price remains below all of its moving averages, which accelerate their declines. Technical indicators in the mentioned chart have recovered just modestly within negative levels, falling short of suggesting further gains ahead. The immediate resistance is the 1.1030 level, the 50% retracement of the October’s rally and this week’s high.

Support levels: 1.0990 1.0950 1.0920

Resistance levels: 1.1030 1.1065 1.1110

View Live chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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