EUR/USD Current price: 1.0569
- Eurozone Sentix Investor Confidence deteriorated in December to -17.5.
- Market players stand in wait-and-see mode ahead of central banks’ announcements.
- EUR/USD is at risk of losing the 1.0500 mark, but not in the near term.
The EUR/USD pair hovers around 1.0560 ahead of Wall Street’s opening, with action limited across financial markets ahead of key events spread throughout this week and the next one. Most major central banks will announce their decisions on monetary policy, with the European Central Bank (ECB) scheduled for this Thursday. The ECB is widely anticipated to trim interest rates by 25 basis points (bps) each amid tepid growth in the Union.
President Christine Lagarde, however, has already warned inflation won’t fall into the ECB’s goal until late next year, cooling speculation about whether inflation could affect the upcoming decisions.
The macroeconomic calendar has little to offer today. The Eurozone released December Sentix Investor Confidence, which worsened to -17.5 from -12.8 in November. The United States (US) will release October Wholesale Inventories after the opening.
EUR/USD short-term technical outlook
Technically, the daily chart for the EUR/USD pair offers a neutral stance, with the bullish potential well-limited. The pair is finding intraday buyers around a bearish 20 Simple Moving Average (SMA,) which heads lower at around 1.0530. The 100 and 200 SMAs, on the contrary, gain downward traction far above the current level. Finally, technical indicators turned modestly lower, just below their midline, lacking directional strength enough to confirm a bearish extension.
The 4-hour chart shows EUR/USD is neutral. The pair develops above its 20 and 100 SMAs, with the shorter one advancing modestly above the longer one. Yet, at the same time, the 200 SMA gains bearish strength above the current level, suggesting prevalent selling interest. Finally, technical indicators hold above their midlines yet offer neutral-to-bearish slopes.
Support levels: 1.0500 1.0465 1.0420
Resistance levels: 1.0625 1.0660 1.0700
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
EUR/USD eases to daily lows near 1.0260
Better-than-expected results from the US docket on Friday lend wings to the US Dollar and spark a corrective decline in EUR/USD to the area of daily lows near 1.0260.
GBP/USD remains under pressure on strong Dollar, data
GBP/USD remains on track to close another week of losses on Friday, hovering around the 1.2190 zone against the backdrop of the bullish bias in the Greenback and poor results from the UK calendar.
Gold recedes from tops, retests $2,700
The daily improvement in the Greenback motivates Gold prices to give away part of the weekly strong advance and slip back to the vicinity of the $2,700 region per troy ounce at the end of the week.
Five keys to trading Trump 2.0 with Gold, Stocks and the US Dollar Premium
Donald Trump returns to the White House, which impacts the trading environment. An immediate impact on market reaction functions, tariff talk and regulation will be seen. Tax cuts and the fate of the Federal Reserve will be in the background.
Hedara bulls aim for all-time highs
Hedara’s price extends its gains, trading at $0.384 on Friday after rallying more than 38% this week. Hedara announces partnership with Vaultik and World Gemological Institute to tokenize $3 billion in diamonds and gemstones
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.