EUR/USD Current price: 1.0392
- The US Dollar gathered momentum as the sentiment soured in Europe.
- Action across financial boards is limited in a holiday-shortened week.
- EUR/USD is under pressure, with lower lows for the day likely.
The EUR/USD pair trades with a soft tone on Monday, with the US Dollar (USD) regaining its strength in a holiday-shortened week. The pair started the day trading at around 1.0430 but currently stands below the 1.0400 mark as the market mood soured throughout the day.
Asian shares turned north, weighing on the USD demand, although the sentiment deteriorated in Europe, with most local indexes turning red and providing near-term support to the American currency. However, activity is well-limited amid winter holidays and celebrations. Most major markets will close on Tuesday, with the holiday extending up to Thursday in Europe.
Data-wise, the macroeconomic calendar has little to offer. Germany published the November Import Price Index, up 0.9% in the month. Later in the day, the United States (US) will release the November Chicago Fed National Activity Index and December CB Consumer Confidence, foreseen at 112.9, up from the previous 111.7.
EUR/USD short-term technical outlook
The daily chart for the EUR/USD pair shows the risk skews to the downside. The pair develops far below all its moving averages, with the 20 Simple Moving Average (SMA) heading south far below the 100 and 200 SMA, which also gain downward strength. Technical indicators, in the meantime, have resumed their declines within negative levels, in line with the ongoing selling pressure.
The near-term picture is also bearish. EUR/USD has fallen below a bearish 20 SMA after starting the day above it, finding intraday resistance around it, currently at 1.410. At the same time, the Momentum indicator retreated sharply from near overbought readings and is currently about to cross its 100 line into negative territory. Meanwhile, the Relative Strength Index (RSI) indicator also heads south, but at 41, in line with lower lows for the day.
Support levels: 1.0370 1.0330 1.0290
Resistance levels: 1.0410 1.0445 1.0490
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

AUD/USD tumbles to a five-year low below 0.6000 amid US-China tariffs war
The AUD/USD pair tumbles to near 0.5985 for the first time since the COVID-19 pandemic during the early Asian session on Monday. The Australian Dollar weakens as China slapped a 34% tax on all US imports in retaliation for US President Donald Trump’s tariffs, raising fear of a trade war between the United States and China.

USD/JPY hangs near a multi-month low; holds above 145.00 amid mixed cues
USD/JPY kicks off the new week on a weaker note, though it manages to hold above the 145.00 mark. The global carnage, amid the mounting risk of a recession led by Trump's sweeping tariffs, underpins the safe-haven JPY and weighs on the currency pair amid a bearish USD.

Gold correction deepens after new record-high is set on Trump’s tariff announcement
Gold pushed higher with the initial reaction to tariff announcements from the United States on Wednesday and touched a record peak of $3,167 before staging a deep correction heading into the weekend. Investors will stay focused on tariff-related headlines and pay close attention to inflation data from the US.

Week ahead: US CPI and RBNZ decision on tap amidst tariff mayhem
US Dollar traders await US CPI data amid global trade turbulence. RBNZ to cut by 25bps, could maintain dovish stance. China’s CPI and PPI to reveal tariff impact on inflation. Strong UK GDP data could help the pound climb higher.

Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.