EUR/USD Forecast: Painful decline continues

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0999

US data beat expectations, dollar stronger but moving in slow motion.
Market players needing the trade war to end to resume trading.
EUR/USD at a brink of a bearish breakout, 1.0990 critical support.

The EUR/USD pair has spent the first part of the day consolidating at the lower end of its measly 30 pips’ weekly range, barely holding above the 1.1000 level. Speculative interest has paid little attention to comments related to the US-China trade relationship and was rather focused on first-tier US data.

According to the official release, the second estimate of Q3 GDP beat expectations revised up to 2.1%. Durable Goods orders were up by 0.6% in October, largely surpassing the market’s expectation of -0.8%. Even further, weekly unemployment claims declined to 213K in the week ended November 22, better than the 221K expected. There’s more in the docket, as the US is still to release October Personal Income and Personal Spending, Pending Home Sales for the same month, and core PCE inflation.

EUR/USD short-term technical outlook

The news gave the dollar a modest boost, with the EUR/USD pair now battling with the 1.1000 figure and trading at its lowest in two weeks. The pair is technically bearish, despite lifeless, barely holding above the 61.8% retracement of its October rally.

In the 4-hour chart, the pair is below all of its moving averages, with the 20 SMA now at around 1.1020. A Fibonacci resistance comes at 1.1030, with the pair most likely remaining under selling pressure as long as below this last. Technical indicators, in the meantime, resumed their declines within negative territory.

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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