EUR/USD Forecast: Stable near its recent highs in thin holidays’ trading

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.2132

China and the US celebrate holidays, with their respective markets closed.
EU trade surplus beat expectations in December, but Industrial Production contracted.
EUR/USD is technically neutral, with the risk skewed to the upside.

The EUR/USD pair trades uneventfully for a fourth consecutive day, although holding on to its latest gains amid prevalent risk-appetite. Holidays in China and the US maintain most major pairs ranging. EUR/USD peaked at 1.2144, now retreating from the level. Over the weekend, the US Senate acquitted former President Donald Trump on his second impeachment, which means it´s now free to discuss the next stimulus package. Equities are up, with US futures standing at record highs.

The EU published the December Trade Balance, which posted a seasonally adjusted surplus of €29.2 billion, better than anticipated. However, Industrial Production in the same month fell 1.6% MoM, and came at -0.8% YoY, missing the market’s expectations. The US won’t publish macroeconomic data.

EUR/USD short-term technical outlook

The EUR/USD pair is trading around 1.2130, neutral in the near-term. It’s developing below the 23.6% retracement of its November/January run in the 1.2170 price zone, the immediate resistance area. The pair is neutral according to the 4-hour chart, as it keeps developing between directionless moving averages. Technical indicators stand within positive levels, but lacking directional strength. Retracements towards the 1.2060 region are likely to attract buyers, instead of signaling a bearish movement ahead.

Support levels: 1.2100 1.2065 1.2020

Resistance levels: 1.2170 1.2215 1.2260

View Live Chart for the EUR/USD

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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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