The EUR/USD recovered from Catalan pro-independence push lower on Friday and managed to gain further after four days of Christmas vacations on Wednesday.
Although the EUR/USD has recovered from lows of $1.1815, the push higher is blocked by downward sloping trendline resistance level near $1.1900.
Currency markets are seen range-bound during three working days separating Christmas vacations from New Year’s Eve with no major economic data releases expected this week.
The US pending home sales and the Conference Board consumer confidence represent major data releases for Wednesday with limited market impact.
While the EUR/USD is limited by a downward sloping trend resistance on the upside, further gains are also limited by the Fast Stochastics moving into the Overbought territory luring sellers instead.
On the lower side, 100-day moving average at $1.1800 is the first hurdle to overcome with 23.6% Fibonacci retracement level of $1.1730 being the next level.
EUR/USD daily chart
-636499694324517911.png)
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD keeps the red near 1.0500 amid market caution ahead of US CPI
EUR/USD holds losses near 1.0500 in the European session on Wednesday. The pair faces headwinds from a cautious market mood and resurgent US Dollar demand, as traders expect an uptick in the US inflation data that could impact the Fed's easing trajectory while the ECB remains on track for more rate cuts.
GBP/USD drops below 1.2750, awaits US inflation data
GBP/USD is back in the red below 1.2750 in European trading on Wednesday. The Pound Sterling loses traction amid renewed US Dollar buying as risk sentiment worsens heading into the key US CPI showdown. The US inflation data is key to gauging the pace of Fed's future rate cuts.
Gold price steadies below $2,700 as traders seem reluctant ahead of US inflation data
Gold price seems to have stabilized following good two-way intraday price swings and currently trades around the $2,690 area, below a two-week high touched earlier this Wednesday. Expectations that the Fed will adopt a cautious stance on cutting rates continue to push the US Treasury bond yields.
US CPI set to grow at faster pace in November, edging further away from Fed target
The US Consumer Price Index report for November, a key measure of inflation, will be unveiled at 13:30 GMT by the Bureau of Labor Statistics. Markets are buzzing in anticipation, as the release could trigger significant swings in the US Dollar and influence the Federal Reserve's plans for interest rates in the months ahead.
How the US-China trade dispute is redefining global trade
Since Donald Trump took office in 2017, trade flows and market shares have changed substantially. We think that shift is set to continue under looming tariffs and a new protectionist environment.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.