EUR/USD slides on Tuesday as markets step back into Greenback bids, stuck near 1.0930

EUR/USD slipped 0.2% on Tuesday as investors bid the USD.
Markets shrugged off a slight decline in euro area unemployment.
The rest of the week is data-light on the EUR side as investors await US CPI inflation.

Joshua Gibson FXStreet

The EUR/USD settled lower on Tuesday, slipping back into familiar near-term lows as broader markets step back from the Euro (EUR) and bidding the US Dollar (USD) up 0.2%.

The Eurozone Unemployment Rate ticked down slightly on Tuesday, declining from 6.5% to 6.4% in November. With the European economy grappling with productivity difficulties, a slight decline in the headline unemployment rate did little to galvanize Euro bulls, and the EUR/USD spent most of Tuesday backsliding in one-sided movement.

With the midweek looking notably thin on the economic calendar, investors will be keeping an eye out for Thursday’s US Consumer Price Index (CPI) inflation print, where market forecasts are expecting a slight uptick in headline annualized CPI inflation for December from 3.1% to 3.2%. MoM CPI is also expected to tick upwards from 0.1% to 0.2%.

Investors are looking for signs that the Federal Reserve (Fed) will get pushed into the next rate cut cycle sooner rather than later. Last Friday’s Nonfarm Payrolls (NFP) forecast beat pushed out market bets of a Fed rate cut as soon as March, and market risk sentiment will be hoping for a miss in US inflation prints on Thursday.

EUR/USD Technical Outlook

The EUR/USD remains trapped in a near-term congestion pattern for early 2024 intraday trading, stuck below a 200-hour Simple Moving Average (SMA) turning bearish just below the 1.1000 handle. The pair has been trapped within a rough range between 1.0980 and 1.0900, and near-term pressures are leaning towards the downside.

Daily candlesticks have the EUR/USD stuck in a rut just north of a bullish cross of the 50-day and 200-day SMAs near 1.0850. The pair is down nearly 2% from December’s peak at 1.1140, but is still up over 4.5% from last October’s early bottom near 1.04485.

EUR/USD Hourly Chart

EUR/USD Daily Chart

EUR/USD Technical Levels

EUR/USD

Overview
Today last price	1.093
Today Daily Change	-0.0025
Today Daily Change %	-0.23
Today daily open	1.0955

Trends
Daily SMA20	1.0971
Daily SMA50	1.0871
Daily SMA100	1.0763
Daily SMA200	1.0847

Levels
Previous Daily High	1.0979
Previous Daily Low	1.0923
Previous Weekly High	1.1046
Previous Weekly Low	1.0877
Previous Monthly High	1.114
Previous Monthly Low	1.0724
Daily Fibonacci 38.2%	1.0957
Daily Fibonacci 61.8%	1.0944
Daily Pivot Point S1	1.0925
Daily Pivot Point S2	1.0896
Daily Pivot Point S3	1.0869
Daily Pivot Point R1	1.0981
Daily Pivot Point R2	1.1008
Daily Pivot Point R3	1.1038

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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