EUR/USD sticks to modest recovery gains, around 1.1270 area post-Eurozone PMIs

EUR/USD witnessed some short-covering move from a 16-month low touched earlier this Thursday.
The USD seems to have entered a bullish consolidation phase and extended some support to the pair.
Upbeat Eurozone PMI prints remained supportive, though COVID-19 jitters cap any further gains.

Haresh Menghani FXStreet

The EUR/USD pair held on to its intraday gains near the 1.1265-75 region post-Eurozone PMI prints, albeit lacked any follow-through buying.

The pair staged a modest recovery from the 1.1225 area, or the lowest level since July 2020 touched earlier this Tuesday and was supported by a combination of factors. The US dollar consolidated the previous day's strong gains to a 16-month peak, which, in turn, prompted some short-covering around the EUR/USD pair.

The shared currency was further underpinned by the release of better-than-expected German/Eurozone PMIs for November. In fact, the flash German Manufacturing PMI came in at 57.6 for the current month and indicated that the manufacturing sector activity in Eurozone’s economic powerhouse continued with its solid pace of expansion.

Adding to this, the gauge for the German services sector reached a two-month high level of 53.4 in November as against expectations for a fall to 51.5 from 52.4 in the previous month. Separately, the flash Eurozone Manufacturing PMI also surpassed market expectations and arrived at 58.6 in November, a two-month high.

Despite the upbeat data, concerns over the rising COVID-19 cases in Europe and the reintroduction of lockdown measures held traders from placing aggressive bullish bets around the shared currency. Apart from this, hawkish Fed expectations continued acting as a tailwind for the USD and further collaborated to cap the EUR/USD pair.

The fundamental backdrop still seems tilted firmly in favour of bearish traders and supports prospects for an extension of the recent bearish trend. Hence, it will be prudent to wait for a strong follow-through buying before confirming that the EUR/USD pair has formed a near-term bottom and positioning for any meaningful recovery move.

Technical levels to watch

EUR/USD

Overview
Today last price	1.1274
Today Daily Change	0.0037
Today Daily Change %	0.33
Today daily open	1.1237

Trends
Daily SMA20	1.149
Daily SMA50	1.1584
Daily SMA100	1.1692
Daily SMA200	1.1855

Levels
Previous Daily High	1.1293
Previous Daily Low	1.1231
Previous Weekly High	1.1464
Previous Weekly Low	1.125
Previous Monthly High	1.1692
Previous Monthly Low	1.1524
Daily Fibonacci 38.2%	1.1255
Daily Fibonacci 61.8%	1.1269
Daily Pivot Point S1	1.1214
Daily Pivot Point S2	1.1191
Daily Pivot Point S3	1.1151
Daily Pivot Point R1	1.1276
Daily Pivot Point R2	1.1316
Daily Pivot Point R3	1.1339

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD slumps below 1.1750 as USD benefits from risk-aversion

EUR/USD comes under renewed bearish pressure in the European session and trades below 1.1750 following a recovery attempt earlier in the day. The US Dollar gathers strength and weighs on the pair as investors seek refuge in the wake of Israel and the United States' joint attack on Iran.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold surges on safe-haven demand, rises above $5,400

Gold benefits from intense risk-aversion on Monday and climbs above $5,400, setting a fresh monthly-high in the process. Tensions in the Middle East remain high as Israel and Hezbollah continue to exchange strikes following the US-Israel joint attack on Iran over the weekend.

Bitcoin, Ethereum and Ripple under pressure as key supports face breakdown risk

Bitcoin, Ethereum, and Ripple prices trade on the back foot at the start of this week on Monday, after extending losses in the previous week. BTC is on the brink of a breakdown, ETH is capped below key resistance, and XRP risks a crack of the trendline.

The market is paying for insurance, not apocalypse

As expected, this morning felt less like a Monday market open and more like a fire drill. Futures screens flickered red. S&P contracts down almost 1%. Nasdaq off 1.2%. Brent leaped 13% through $80. Gold rose 1.6% toward $5350 before paring some gains. The dollar is strutting mildly. The Swiss franc is quietly doing what it always does in a storm, catching some safe-haven flows.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.