The Euro remains at the back foot on Thursday, holding in red for the fourth straight day, after Wednesday's action was rejected above pivotal Fibo support at 1.1714 (61.8% of 1.1612/1.1880) and subsequent bounce and narrow consolidation were short-lived. The single currency came under pressure on fresh wave of risk aversion amid surge in new Covid-19 cases and fresh restrictive measures across the Europe, as well as growing uncertainty ahead of US election day.
Daily techs in bearish setup support scenario, as negative momentum continues to rise and daily cloud twist next week, continues to attract.
Last week's bull-trap above 1.1858 Fibo barrier sparked fresh acceleration lower.
Extended near-term bears ears probe again through cracked trendline support (bull trendline connecting 1.1612/1.1703 low) today, pressuring 1.1714 pivot, break of which would confirm reversal and open way for further weakness.
The Euro did not react to data released earlier which showed unemployment in Germany fell more than expected, signaling steady recovery in the sector, as all eyes turn on today's ECB policy meeting.
The European central bank's policy is likely to stay unchanged today, but with strong expectations that the ECB will pave way for further easing in December.
The EU economy is hit by the second wave of coronavirus, with sharp rise in new cases, prompting bloc's member countries to impose new, more restrictive measures, which could further undermine fragile economic recovery.
Dovish stance from the ECB would further pressure euro and risk extension towards the floor of multi-month range at 1.1612. A number of resistances lay above and expected to limit corrective upticks, with near-term action to remain biased lower while holding below 1.1800 pivotal resistance zone.

Res: 1.1746; 1.1774; 1.1791; 1.1818
Sup: 1.1714; 1.1690; 1.1675; 1.1650


Interested in EUR/USD technicals? Check out the key levels

    1. R3 1.1872
    2. R2 1.1836
    3. R1 1.1791
  1. PP 1.1754
    1. S1 1.171
    2. S2 1.1673
    3. S3 1.1628

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

GBP/USD tumbles from the highest since 2018 on the Brexit impasse

The GBP/USD roller coaster continues with a downfall below 1.35 after the pair hit a 31-month high of 1.3539 earlier. Brexit talks have yet to yield an agreement. Negotiations are set to continue through the weekend.


EUR/USD battles 1.2150 after disappointing NFP

EUR/USD is trading off the 32-month highs amid bumps in US stimulus and vaccine distribution. Markets await the all-important US Nonfarm Payrolls missed expectations with 245K jobs gained in November. 


XAU/USD fails to break $1850 and turns to the downside

Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.

Gold news

Dollar downfall explained and what's next for markets

The safe-haven US dollar is hitting multi-month and multi-year lows against its peers while stocks are on fire. What is behind the risk-on rally? Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss markets' moving parts as 2020 nears its end.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors