EUR/USD flat-lined around 1.0720, German data eyed

Dhwani Mehta FXStreet

The EUR/USD pair extends its Asian side-trend into early European trading, as the bulls continue their struggle to regain control amid resurgent USD demand across the board.

EUR/USD supported at 1.0700

Currently, EUR/USD now trades almost unchanged at 1.0718, having posted a day’s high at 1.0726 and day’s low at 1.0713. The main currency pair is seen consolidating yesterday’s decline, trading absolutely flat-lined in an extremely slim, as the euro enters a typical quiet phase ahead of the ECB monetary policy decision due tomorrow.

The US-based banking giant, Goldman Sachs, noted in its preview on the ECB, that it expects the central bank to announce an extension to its QE program at its policy meeting due Thursday.

The major managed to find some bids near 1.07 handle, although the recovery appears fragile as the greenback regains poise after a brief corrective slide seen against its main competitors during the Asian session.

The immediate focus now remains on the German industrial figures due ahead of Europe open, while the next incentive for the spot will be received from the US JOLTS job opening data. In the meantime, the broader market sentiment will continue to drive the prices.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0798 (3-week highs). A break beyond the last, doors will open for a test of 1.0817 (Nov 15 high) and from there to 1.0850 (psychological levels). On the flip side, the immediate support is placed at 1.0700 (round number) below which 1.0685 (5-DMA) and 1.0657/37 (10 & 20-DMA) could be tested.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0628

38% Bullish
62% Bearish
0% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0692

50% Bullish
33% Bearish
17% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.0662

45% Bullish
50% Bearish
5% Sideways

Bias Bearish

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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