EUR/USD Current price: 1.1349

  • The dollar edged lower despite rallying US Treasury yields.
  • Concerns about the Omicron coronavirus variant keep dampening the mood.
  • EUR/USD is mildly bullish in the near term, faces Fibonacci resistance at 1.1380.

The EUR/USD pair hit an intraday high of 1.1345, holding nearby, heading into the Asian opening. The shared currency recovered against the greenback, despite a sour market’s mood and higher US government bond yields. The American dollar is down across the board, although losses are uneven. The EUR and the AUD are the best performers, while GBP is among the worst.

Speculative interest is not paying much attention to US government bond yields that reached fresh weekly highs. Inflation-related concerns may have been partially overshadowed by US Federal Reserve Chair Jerome Powell’s comment, as he said policymakers would discuss speeding up tapering in their December meeting. Meanwhile, the yield on the 10-year Treasury note stands at 1.52%, while US indexes are mixed, not far from their opening levels.

The EU did not release relevant macroeconomic figures, while the US published MBA Mortgage Applications for the week ended December 3, up 2% from -7% in the previous month. The country also published October JOLTS Job Openings, which showed that the number of job openings increased to 11.0 million on the last business day of October, although hires were little changed at 6.5 million and total separations edged down to 5.9 million. On Thursday, Germany will publish the October Trade Balance, while the US will release Initial Jobless Claims for the week ended December 3.

EUR/USD short-term technical outlook

The EUR/USD pair daily chart shows that it has rallied once, breaking above its 20 SMA, but further gains are not yet clear. Technical indicators keep advancing but are still within negative levels. Additionally, the pair is developing below the 38.2% Fibonacci retracement of the November rally at 1.1380, the immediate resistance level.

The pair has a moderate bullish potential in the near term. The 4-hour chart shows that the pair has finally advanced beyond the 20 and 100 SMAs, which keep converging, while technical indicators have lost their positive momentum and turned flat within positive levels.

Support levels: 1.1310 1.1265 1.1220  

Resistance levels:  1.1380 1.1425 1.1470

View Live Chart for the EUR/USD

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