EUR/USD steady around 1.1320s as France reintroduce restrictions on Omicron Covid-19 spike

The EUR/USD slightly advances during the New York session, trading at 1.1326 at the time of writing. As witnessed by US stock indices rising between 0.73% and 1.47%, the market mood is upbeat. Over the weekend, US airline companies canceled up to 3,000 flights amid personal shortage and a spike of Covid-19 cases in the US.

In the meantime, a report by Mastercard showed that US eCommerce sales jumped 11% on the 2021 holiday season, yet reinforcing the change of customers shopping habits.

In the last couple of hours, the French Prime Minister Jean Castex announced a series of measures imposed due to the ongoing spike of Covid-19 Omicron-related cases. The French PM said that people who have only three months after the second Covid-19 shot might be subject to a booster instead of four.  From Monday and for the following three weeks, all public gatherings will be limited to 2,000 people, per Reuters.

Further added that home working would be mandatory three days per weak at least, and mask-wearing will become mandatory outdoors in city centers.

Market’s reaction

The EUR/USD barely blink, once the news crossed the wires, has remained seesawing around the 50-hour simple moving average (SMA) around the 1.1320-35 area, amid thin liquidity conditions as investors eye the end of the year.

EUR/USD Price Forecast: Technical outlook

The EUR/USD pair remained trapped around the 1.1300-50 area for the last two trading days, seesawing around the 50-hour SMA, as shown by the 1-hour chart. The pair has a slight-upward bias, though failure to break above the December 24 daily high at 1.1343 would open the door for further losses.

Nevertheless, in the event of breaking above the aforementioned, the next resistance would be the December 16 daily high at 1.1360. A decisive break of that level would expose the November 30 daily high at 1.1382, followed by the 1.1400 figure. 

On the flip side, the first support would be the 100-hour SMA at 1.1313. A breach of the latter would expose the confluence of the 200-hour SMA and the psychological 1.1300 figure that once pierced would open the door towards the December 17 swing low at 1.1235.