EUR/USD Current Price: 1.1132

  • US inflation met the market’s expectations in December, failed to impress.
  • EU-US trade tensions dented demand for the shared currency.
  • EUR/USD stuck around 1.1100, upside limited by Fibonacci resistance at 1.1145.

The market mood was not that positive this Tuesday, as market players took their eyes of the Middle-East and focused on other issues. The EUR/USD pair continued to trade within a limited range throughout the day, ending it with modest losses at around 1.1130. Trade returned to the spotlight as EU Trade Commissioner Phil Hogan visited his counterpart in Washington to pour some cold water on the trade relationship between the two economies after US President Trump threatened to retaliate on French tax on US tech-firms. Sentiment suffered the most as the White House announced it would include Switzerland in a currency manipulator watch-list.

The US published the latest December inflation data, which came in as the annual core CPI came as expected at 2.3% YoY, which suggest no need for the Fed to change the curse of monetary policy. This Wednesday, Germany will release Real GDP Growth, foreseen at 0.6% against the previous 1.5%. The EU, on the other hand, will publish the November Trade Balance and Industrial Production. The US will publish  December PPI although the market will focus on the US-China trade deal, and the details of phase one, expected to be out this Wednesday

EUR/USD short-term technical outlook

The EUR/USD pair is trading just below the 38.2% retracement of its latest daily slide, measured between 1.1238 and 1.1084 at 1.1145. The pair is neutral-to-bullish in its 4-hour chart, still stuck between directionless moving averages and with technical indicators that have turned flat within positive levels. The pair could extend its advance in the short-term once above the mentioned Fibonacci resistance, but chances of a sustained advance are still seen limited.

Support levels: 1.1090 1.1065 1.1020

Resistance levels: 1.1145 1.1180 1.1220

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 challenges weekly lows after mixed Durable Goods Orders

US Durable Goods Orders were up a measly 0.4% in August, missing expectations of 1.0%, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Equities bounce from lows, but the dollar maintains its strength.


GBP/USD loses 1.2700 as the dollar keeps rallying

GBP/USD approaches its weekly low at 1.2674 as demand for the American currency extends into the final trading session of the week. Hopes for a UK trade deal with the EU doing little for Sterling.


Gold: Downside appears more compelling in the NFP week ahead

Gold (XAU/USD) shed about 4.5% in the past week, delivering a weekly closing below the August month low of $1863. The yellow metal booked the first weekly loss in three, with the risks skewed to the downside in the US Non-Farm Payrolls (NFP) week ahead.  

Gold News

Breaking: ​​​​​​​The IRS makes it hard to pretend you don’t have Bitcoin

The cryptocurrency holders might have a hard time trying to hide their Bitcoins or other digital assets. IRS considers changing the standard 1040 form by including a bold question on the front page:  At any time during 2020, did you sell, receive, send, exchange, or otherwise acquire any financial interest in any virtual currency? 

Read more

WTI moves back to flat and once again trades above $40 per barrel

It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December.

Oil News

Forex Majors