EUR/USD Forecast: Volatile within range, 1.1920 still caps

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1872

German Q3 Gross Domestic Product was upwardly revised to 8.5%.
Equities are in recovery mode and poised to extend their pre-opening gains.
EUR/USD is technically neutral but holding near the upper end of the range.

The EUR/USD pair resumed its advance and flirted with the 1.1900 figure but was unable to surpass the level and retreated. Financial markets have come back to life on Monday, and volatility extends into Tuesday. The shared currency appreciated following the release of German data. The final reading of Q3 GDP was better than anticipated, coming at 8.5% in the three months to September. The November IFO survey on Business Climate met expectations with 90.7, with the assessment of the current situation beating expectations, although expectations contracting by more than anticipated.

The dollar recovers part of its charm ahead of the US opening, appreciating against most of its major rivals. The EUR/USD pair trimmed part of its intraday advance and trades around 1.1870, as Wall Street aims to open with substantial gains. The US will publish today the November Richmond Fed Manufacturing Index, foreseen at 29, and CB Consumer Confidence, expected at 97.7 from 100.9 in the previous month.

EUR/USD short-term technical outlook

The EUR/USD pair is technically neutral, with a limited bearish potential according to the 4-hour chart. The pair bounced yesterday from a mildly bullish 100 SMA, now trading a handful of pips above a directionless 20 SMA. Technical indicators continue to hover around their midlines, lacking directional strength. The pair needs to clear the 1.1920 resistance area to gain bullish traction, while the bearish potential should increase on a break below 1.1810.

Support levels: 1.1810 1.1770 1.1715

Resistance levels: 1.1920 1.1960 1.2010

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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