EUR/USD: Strong bounce elusive despite bear failure near 1.20


  • EUR/USD trades 0.12% lower at 1.2020 versus 1.2043 in Asia. 
  • Buyers elusive despite signs of bear fatigue near 1.20. 
  • Upbeat US data, Eurozone vaccine conerns keep the pair under pressure.

EUR/USD struggles to gather upside traction despite signs of bear fatigue near 1.20. The bulls remain on the sidelines, with the US data signaling economic recovery and pushing yields higher. 

Sellers ran out of steam near 1.20 for the second straight day on Wednesday after the pro-EU former European Central Bank (ECB) President Draghi accepted the Italian President's offer to form a government. 

The pair essentially formed a daily candle with a long lower wick, implying bear fatigue near 1.20. So far, however, that has failed to inspire buying. EUR/USD is trading near 1.2020 at press time, having reached a high of 1.2043 in Asia. 

Possibly capping the bounce is the upbeat US economic data released Wednesday. The US ADP Employment and ISM Non-Manufacturing bettered estimates, raising prospects of a faster recovery in the world's largest economy. The 10-year Treasury yield jumped seven basis points to 1.15% on Wednesday and is currently consolidating on yesterday's gains. 

Also, concerns regarding Eurozone's slow coronavirus vaccine delivery could be weighing over the euro. 

The pair could drop below 1.20 unless the Eurozone Retail Sales data for December due at 10:00 GMT shows a significant rise in consumer spending. In that case, traders may put a bid under the single currency, helping EUR/USD avoid a move below 1.20. The US weekly jobless claims and factory orders data due later Thursday could influence the broad-based dollar demand. 

Technical levels

EUR/USD

Overview
Today last price 1.2018
Today Daily Change -0.0015
Today Daily Change % -0.12
Today daily open 1.2033
 
Trends
Daily SMA20 1.2135
Daily SMA50 1.215
Daily SMA100 1.1964
Daily SMA200 1.1692
 
Levels
Previous Daily High 1.205
Previous Daily Low 1.2004
Previous Weekly High 1.2183
Previous Weekly Low 1.2058
Previous Monthly High 1.235
Previous Monthly Low 1.2054
Daily Fibonacci 38.2% 1.2022
Daily Fibonacci 61.8% 1.2033
Daily Pivot Point S1 1.2008
Daily Pivot Point S2 1.1983
Daily Pivot Point S3 1.1962
Daily Pivot Point R1 1.2054
Daily Pivot Point R2 1.2075
Daily Pivot Point R3 1.21

 

 

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