EUR/USD to gain bearish traction on a break below 1.1810

EUR/USD trimmed part of its intraday advance and trades around 1.1850, as Wall Street aims to open with substantial gains. The pair is technically neutral, with a limited bearish potential according to the 4-hour chart but still capped by the 1.1920 resistance, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The shared currency appreciated following the release of German data. The final reading of Q3 GDP was better than anticipated, coming at 8.5% in the three months to September. The November IFO survey on Business Climate met expectations with 90.7, with the assessment of the current situation beating expectations, although expectations contracting by more than anticipated.”

“The dollar recovers part of its charm ahead of the US opening, appreciating against most of its major rivals. The US will publish today the November Richmond Fed Manufacturing Index, foreseen at 29, and CB Consumer Confidence, expected at 97.7 from 100.9 in the previous month.”

“The EUR/USD pair needs to clear the 1.1920 resistance area to gain bullish traction, while the bearish potential should increase on a break below 1.1810.”