EUR/USD Current Price: 1.0717

  • Fading optimism weighs on global stocks and benefits the US Dollar.
  • Market players await words from US Federal Reserve Chair Jerome Powell.
  • EUR/USD retreats from a critical Fibonacci resistance level, but bears remain side-lined.

The EUR/USD pair trades in a tight range, below a daily high at 1.0751. The market optimism that dominated the start of the week faded ahead of Tuesday's opening. Wall Street trimmed gains and finished  Monday mixed, with only the Nasdaq Composite posting gains. Asian stocks also trade mixed, but European ones remain in the red, dragging US futures lower.

However, given the absence of a strong catalyst, movements across the FX board remain limited. The US Dollar is marginally higher, backed by the dismal mood and an uptick in Treasury yields. Market players are waiting for an update on United States inflation, as the country will publish the December Consumer Price Index (CPI) next Thursday. The annual reading is seen at 6.5%, decreasing from 7.1% YoY in the previous month.

So far, the US published the December NFIB Business Optimism Index, which declined to 89.8 from 91.9 in the previous month. The country will later release IBD/TIPP Economic Optimism for January and November´s Wholesale Inventories. More relevantly, US Federal Reserve (Fed) Chair Jerome Powell will participate in a panel discussion titled "Central bank independence and the mandate – evolving views" at the Riksbank's International Symposium on Central Bank Independence in Sweden.  

EUR/USD short-term technical outlook

The EUR/USD pair cannot break above the 1.0740 price zone, where it has the 61.8% Fibonacci retracement of its 2022 decline. The daily chart shows that the pair is barely down but still far above bullish moving averages. The 20 SMA advances above the longer ones and provides dynamic support at around 1.0630. Technical indicators, in the meantime, hold directionless within positive levels, reflecting limited selling interest.

In the near term, and according to the 4-hour chart, the ongoing slide seems corrective. The pair trades above all of its moving averages, and with the 20 SMA crossing above the 100 SMA, developing some 100 pips below the current level. At the same time, technical indicators turned marginally lower, retreating from overbought levels but still far from their midlines and without enough strength to support a steeper decline.

Support levels: 1.0685 1.0630 1.0590

Resistance levels: 1.0750 1.0795 1.0800

View Live Chart for the EUR/USD 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD recovers toward 1.0400 as USD rally loses steam

EUR/USD recovers toward 1.0400 as USD rally loses steam

EUR/USD recovers from daily lows toward 1.0400 in the American session on Tuesday. Following the earlier rally, the USD struggles to preserve its strength as the bullish opening in Wall Street's main indexes point to an improving risk mood.

EUR/USD News
GBP/USD stays below 1.2300 after UK employment data

GBP/USD stays below 1.2300 after UK employment data

GBP/USD rebounds from session lows but remains below 1.2300 in the second half of the day on Tuesday. The US Dollar clings to modest gains but finds it difficult to gather further bullish momentum as the impact of Trump's tariff threats fade.

GBP/USD News
Gold climbs to fresh multi-month high above $2,730

Gold climbs to fresh multi-month high above $2,730

Gold gathers bullish momentum and trades at its highest level since early November above $2,730 on Tuesday. The benchmark 10-year US Treasury bond yield is down more than 1% below 4.6% following US President Trump's tariff threats, helping XAU/USD push higher.

Gold News
Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin’s price steadies above the $102,000 mark on Tuesday after reaching a new all-time high of $109,588 the previous day. Santiment’s data shows that BTC prices quickly corrected, as social media showed major greed and FOMO among the traders in Bitcoin after President Donald Trump’s inauguration.

Read more
Prepare for huge US trade changes as Trump goes America first

Prepare for huge US trade changes as Trump goes America first

You can be sure that big changes are coming as far as US trade is concerned, even if we didn't get any new tariffs on President Trump's first day in office. A comprehensive investigation into US trade relationships was initiated via a memorandum. China, Canada, and Mexico are clearly in the immediate firing line. 

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Majors

Cryptocurrencies

Signatures