EUR/USD Forecast: Consolidative phase continues around 1.0600

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.0618

German and US Consumer Confidence improved, according to fresh updates.
The US will publish the final estimate of its Q3 GDP on Thursday.
EUR/USD trades with a near-term neutral stance as bulls retain control.

The EUR/USD pair held within familiar levels on Wednesday, losing ground through American trading hours and ending the day around the 1.0600 mark. The US Dollar benefited from an upbeat report, as CB Consumer Confidence increased in December by more than anticipated, with the index surging to 108.3 from an upwardly revised 101.4 in November. The index is now at its highest level since April 2022.

Earlier in the day, Germany published the Gfk Consumer Confidence Survey, which improved to -37.8 in January from -40.1 in January. Also, the United States published Mortgage Applications for the week ended December 16, up 0.9%, while Existing Home Sales declined by 7.7% in November.

Thursday will bring some reports of interest as the US will unveil the final estimate o its Q3 Gross Domestic Product, expected to confirm an annualized pace of growth of 2.9%. The country will also publish Initial Jobless Claims for the week ended December 16 and Q3 PCE inflation.

EUR/USD short-term technical outlook

The daily chart for the EUR/USD pair shows demand has eased, but technical readings are far from suggesting an upcoming decline. The pair holds above all of its moving averages, with the 20 SMA advancing well above the longer ones. The Momentum indicator turned south but is barely holding above its 100 SMA. The Relative Strength Index (RSI), on the other hand, keeps consolidating near overbought readings.

The 4-hour chart offers a neutral stance. EUR/USD seesaws for a third consecutive day around a mildly bearish 20 SMA, while the longer moving averages keep heading north below it. Technical indicators, in the meantime, turned marginally lower within neutral levels. The pair could shed some more ground in the near term, particularly if it breaks below the 1.0580 level, but a steeper decline is out of the picture for now.

Support levels: 1.0580 1.0535 1.0480

Resistance levels: 1.0650 1.0695 1.0740

View Live Chart for the EUR/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.