EUR/USD pares gains after EU-UK trade deal, looks to close flat near 1.2180

EUR/USD lost its traction during the American trading hours.
Sharp drop in GBP/USD helped the greenback gather strength.
Market action is expected to remain subdued until next week.

Eren Sengezer FXStreet

The broad-based USD weakness allowed the EUR/USD pair to climb above 1.2200 during the European trading hours. However, the pair struggled to preserve its bullish momentum in the second half of the day and now remains on track to close virtually unchanged near 1.2180.

In the absence of significant macroeconomic data releases on Christmas Eve, Brexit headlines ramped up the market volatility. Reports of an imminent UK-EU trade deal fueled an impressive rally in the GBP/USD pair and made it difficult for the USD to attract investors.

After dropping to a daily low of 90.15, the US Dollar Index (DXY) staged a rebound during the American session and forced EUR/USD to erase its daily upside.

The confirmation of the EU-UK trade deal triggered a "sell the fact" market reaction and the DXY turned flat on the day 90.37.

GBP/USD drops back towards 1.3550 in “sell the fact” reaction to Brexit deal announcement.

EU's Barnier: UK trade deal will be put to EU Council, EU parliament.

Breaking: EU's von der Leyen says trade deal with UK is fair, balanced and right.

UK PM Johnson: There will be parliamentary vote on EU trade deal on December 30.

Technical levels to consider

EUR/USD

Overview
Today last price	1.2182
Today Daily Change	-0.0014
Today Daily Change %	-0.11
Today daily open	1.2196

Trends
Daily SMA20	1.2119
Daily SMA50	1.1928
Daily SMA100	1.1863
Daily SMA200	1.1498

Levels
Previous Daily High	1.2221
Previous Daily Low	1.2154
Previous Weekly High	1.2273
Previous Weekly Low	1.2116
Previous Monthly High	1.2003
Previous Monthly Low	1.1603
Daily Fibonacci 38.2%	1.2195
Daily Fibonacci 61.8%	1.218
Daily Pivot Point S1	1.2159
Daily Pivot Point S2	1.2123
Daily Pivot Point S3	1.2092
Daily Pivot Point R1	1.2226
Daily Pivot Point R2	1.2257
Daily Pivot Point R3	1.2293

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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