EUR/USD Current Price: 1.1007

  • China announced it would raise penalties on intellectual property theft.
  • Fears of a German recession resurged following the release of the IFO survey.
  • EUR/USD near the 61.8% retracement of its October rally and November’s monthly low.

The week has started with the greenback appreciating against most major rivals, on the back of another peak of optimism related to the US-China trade relationship. The latest news indicated that the Chinese government said it would raise penalties on intellectual property theft on Sunday, something the US has been demanding for long. The EUR/USD pair traded as low as 1.1003, now hovering around 1.1010 ahead of the Asian opening.

Germany released the November IFO survey, with the Business Climate printing at 95 as expected. The assessment of the current situation also matched the market’s forecast with 97.9, although expectations were a miss, hitting 92.1. The US, on the other hand, published the October Chicago Fed National Activity Index, which came in worse than anticipated at -0.71, and the Dallas Fed Manufacturing Business Index for November, which improved to -1.3. Data failed to impress, although poor German figures dented demand for the Euro.

This Tuesday, Germany will release the December GFK Survey, seen unchanged at 9.6. The US will publish some minor figures and the CB Consumer Confidence survey, expected to have bounced from 125.9 to 126.9.

EUR/USD short-term technical outlook

The  EUR/USD pair is technically bearish, although it would need to clearly break below 1.0990 to confirm additional slides ahead. The level stands for the 61.8% retracement of its October rally, while November’s monthly low stand at 1.0988. The 4-hour chart shows that the pair has extended its decline below all of its moving averages, with the 20 SMA accelerating south below the larger ones. The Momentum indicator has barely bounced from oversold readings while the RSI consolidates just above its 30 line, all of which keeps the risk skewed to the downside.

Support levels: 1.0985 1.0950 1.0915

Resistance levels: 1.1030 1.1065 1.1100

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 recaptures 1.18 amid uncertainty about US fiscal boost

EUR/USD is trading around 1.18, holding onto its recovery. Uncertainty about the next US fiscal relief package, coronavirus, and the economy are weighing on the dollar again. 

EUR/USD News

GBP/USD bounces off the lows amid market calm

GBP/USD is trading closer to 1.31 as investors are hopeful for progress in Brexit talks and are less concerned about a lockdown in London. The US dollar is giving some ground.

GBP/USD News

XAU/USD bull-bear tug-of-war extends around $1975

XAU/USD sidelined heading into the European session. Downside limited by dollar weakness, coronavirus concerns. Focus remains on the USD dynamics and the United States/China updates.

Gold News

What you need to know about trading in August

The generally received wisdom is that summer is a quiet month for trading. Traders are on holiday and markets quieten down. That’s the expectation among many. However, the reality is that August can be one of the most volatile trading months of the year.

Read more

WTI: Bulls await API data to attack $41.00

WTI struggles to extend recovery moves from $40.74 beyond $41.00. Virus woes join OPEC output increase to combat drop in Russian oil production. US Factory Orders, API inventories will be the key.

Oil News

Forex Majors

Cryptocurrencies

Signatures