EUR/USD Current price: 1.0613
- German political turmoil and tepid data add pressure on the Euro.
- Demand for the US Dollar prevails in a risk-averse environment.
- EUR/USD maintains its strong bearish momentum and aims to break below 1.0600.
The US Dollar retains its positive momentum across the FX board, pushing EUR/USD close to its year low at 1.0600.
German data, in the meantime, weighed the Euro. The largest Union country published the ZEW survey on Economic Sentiment, which deteriorated by more than anticipated in November. The index fell to 7.4 from 13.1 in October, missing expectations of 12.8. Economic Sentiment in the Eurozone declined to 12.5, while the assessment of the current situation plunged to -91.4 points. According to the official report, “economic expectations for Germany have been overshadowed by Trump’s victory and the collapse of the German government coalition.”
On the one hand, Trump’s victory means potential fresh tariffs to the already battered manufacturing sector. On the other hand, Germany’s coalition government collapsed after Chancellor Olaf Scholz fired Finance Minister Christian Lindner. Lawmakers agreed to hold a federal election in February, while the Parliament will hold a confidence vote in mid-December.
Other than that, Germany confirmed the annualized Consumer Price Index (CPI) at 2.4% in October, as previously estimated.
Across the pond, the United States (US) released the October NFIB Business Optimism Index, which improved from 91.5 to 93.7. A couple of Federal Reserve (Fed) officials will be on the wires in the American afternoon, with nothing else to consider until Wednesday, when the US will publish the October CPI.
EUR/USD short-term technical outlook
The EUR/USD pair trades a handful of pips above the 1.0600 mark and technical readings in the daily chart suggest the decline may continue. Technical indicators keep heading south within negative levels, without signaling oversold conditions neither or downward exhaustion. In the same chart, the 20 Simple Moving Average (SMA) accelerated lower below the 100 and 200 SMAs while roughly 200 pips above the current level.
EUR/USD is oversold in the near term. The 4-hour chart shows technical indicators extend their advances within oversold readings, not yet enough to suggest a potential reversal. All moving averages accelerated south well above the current level, reflecting sellers’ strength.
Support levels: 1.0600 1.0565 1.0520
Resistance levels: 1.0640 1.0685 1.0720
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 consolidates near two-week high, looks to US NFP for fresh impetus
AUD/USD holds steady around the 0.6335 area during the Asian session on Friday as traders now await the US NFP report. Bets that the Fed will cut rates further amid concerns over failing US economic growth keep the USD depressed near a multi-month low and act as a tailwind for spot prices, though tariff jitters warrant caution for bulls.
USD/JPY: Japanese Yen stands firm near a multi-month high against a broadly weaker USD
The Japanese Yen continues to be underpinned by increasing bets for more BoJ rate hikes. Trade tariff jitters and the risk-off mood further seem to underpin demand for the safe-haven JPY. Expectations for further policy easing by the Fed weigh on the USD and the USD/JPY pair.
Gold price remains depressed ahead of US NFP; trade jitters to limit losses
Gold price trades with negative bias for the second straight day, though a combination of factors continues to act as a tailwind ahead of the crucial US NFP report later this Friday. Rising trade tensions continue to weigh on investors' sentiment.
Crypto AI Tokens: Why FET, NEAR and RNDR could outperform BTC after White House Summit
The White House Crypto Summit is scheduled to hold on Friday. Rather than double-down on BTC, sector-wide price trends show that investors are leaning towards Crypto AI altcoins.
Make Europe great again? Germany’s fiscal shift is redefining the European investment playbook
For years, Europe has been synonymous with slow growth, fiscal austerity, and an overreliance on monetary policy to keep its economic engine running. But a major shift is now underway. Germany, long the poster child of fiscal discipline, is cracking open the purse strings, and the ripple effects could be huge.
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.