EUR/USD testing 1.2100 amid USD pullback, ahead of ZEW, Yellen

EUR/USD attempts recovery as the USD bulls turn cautious.
Stimulus hopes-driven risk-on mood weighs on the greenback.
Next of note remains the German ZEW, Yellen’s hearings.

Dhwani Mehta FXStreet

EUR/USD trades close to 1.2100, holding onto the recovery mode ahead of the European open. The recovery in the risk sentiment amid expectations of additional fiscal stimulus is weighing on the safe-haven US dollar.

US President-elect Joe Biden is set to take Office on January 20, pushing for the $1.9 trillion stimulus package already outlined last week.

Meanwhile, the Treasury Secretary nominee Janet Yellen is likely to urge the government to "act big" with its next coronavirus relief package when she testifies before the Senate later on Tuesday.

Additionally, Eurozone finance ministers renewed push for fiscal support for their economies, in order to boost the post-pandemic recovery plans, also renders supportive for the riskier assets.

Looking ahead, the major will remain at the mercy of the US dollar dynamics and risk trends ahead of Yellen’s testimony. In the meantime, the German ZEW survey could keep the EUR traders somewhat busy.

EUR/USD technical levels

“Any further upside past-1.2100 needs to cross the falling wedge’s resistance line, at 1.2116 now, to recall the EUR/USD buyers eyeing to refresh the multi-month high above 1.2349. On the contrary, the quote’s U-turn from present levels will have strong support around 1.2045/40 area including the pattern’s lower line and December 02 trough,” FXStreet’s Analyst Anil Panchal notes.

EUR/USD additional levels

EUR/USD

Overview
Today last price	1.2096
Today Daily Change	0.0019
Today Daily Change %	0.16
Today daily open	1.2077

Trends
Daily SMA20	1.2205
Daily SMA50	1.2087
Daily SMA100	1.1931
Daily SMA200	1.1617

Levels
Previous Daily High	1.2087
Previous Daily Low	1.2054
Previous Weekly High	1.2227
Previous Weekly Low	1.2077
Previous Monthly High	1.231
Previous Monthly Low	1.1924
Daily Fibonacci 38.2%	1.2066
Daily Fibonacci 61.8%	1.2074
Daily Pivot Point S1	1.2058
Daily Pivot Point S2	1.2039
Daily Pivot Point S3	1.2024
Daily Pivot Point R1	1.2091
Daily Pivot Point R2	1.2106
Daily Pivot Point R3	1.2125

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD rebounds above 1.3300 ahead of UK Retail Sales data

The GBP/USD pair recovers some lost ground to near 1.3325, snapping the five-day losing streak during the Asian trading hours on Friday. However, the potential upside might be limited amid heightened military tensions in the Middle East. Traders brace for the release of the UK Retail Sales data, which will be published later on Friday.

EUR/USD rises as US Dollar weakens despite rising Middle East tensions

EUR/USD gains ground after posting modest losses in the previous day, trading around 1.1380 during the Asian hours on Friday. However, the potential upside for the pair could be limited as the US Dollar may regain strength, largely driven by escalating conflicts in the Middle East that threaten to push crude oil prices higher.

Gold licks wounds near $4,050 on PMI day

Gold licks wounds near $4,050 in Asia on Friday, holding the previous day's heavy losses amid rising expectations of a Fed rate hike, bolstered by energy-driven inflation concerns. Moreover, the US-Iran standoff and US President Donald Trump's new tariffs keep the US Dollar's reserve-currency status alive, which continues to weigh on the bullion ahead of global flash PMIs.

Ethereum: Derivatives interest in ETH improves, but signs of caution remain

Ethereum is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoin's open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7.

Silver's missing crisis trade: Why a war keeps pushing it down

The Strait of Hormuz has closed twice this year, and both times silver fell instead of rallying, because the crisis bid went into the US dollar rather than into metals. Silver trades near $58.77 an ounce as I write this, with the gold-silver ratio around 69.5.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.