EUR/USD Current Price: 1.2196

  • Upcoming US President Joe Biden is likely to announce more stimulus on Thursday.
  • The market’s sentiment improved just modestly, Treasury yields kept rallying.
  • EUR/USD recovered some ground but is still at risk of falling.

The EUR/USD pair posted a modest intraday advance this Tuesday, consolidating its latest decline at around 1.2150 for most of the day. Demand for the greenback receded, but the shared currency was unable to recover the ground lost on Monday. Equities traded with a mixed tone, as despite optimism about possible fiscal stimulus in the US, investors were cautious. Upcoming US President Joe Biden is scheduled to speak next Thursday, and speculation points to an announcement on stimulus on that event.

Data wise, investors have little to take care of. The Union didn’t publish macroeconomic data, while the US released minor reports.  The December NFIB Business Optimism Index contracted from 101.4 to 95.9, missing the market’s expectations, while the January IBD/TIPP Economic Optimism index improved from 49 to 50.1.

This Wednesday, the ECB will publish November Industrial Production, while ECB’s head, Christine Lagarde is scheduled to speak. The US will release December inflation figures, with core annual inflation foreseen steady at 1.6%.

EUR/USD short-term technical outlook

The EUR/USD pair is still at risk of falling, despite trading near its daily highs in the 1.2190 price zone. The 4-hour chart shows that a mildly bullish 200 SMA continues to provide dynamic intraday support, although the pair remains below a firmly bearish 20 SMA. Technical indicators have recovered further from oversold readings, but have lost directional strength within negative levels, indicating limited buying interest. Additional declines are more likely on a break below 1.2125, the immediate support level.

Support levels: 1.2170 1.2125 1.2080  

Resistance levels: 1.2210 1.2250 1.2300

View Live Chart for the EUR/USD

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex Majors