EUR/USD Forecast: Euro remains stuck between key technical levels

EUR/USD continues to fluctuate at around 1.0800 on Wednesday.
The US data showed that private sector employment rose less than expected in November.
The pair needs to stabilize above 1.0820 to attract technical buyers.

Eren Sengezer FXStreet

EUR/USD is struggling to make a decisive move in either direction on Wednesday and extending its sideways grind at around 1.0800.

The data from the US revealed that employment in the private sector rose by 103,000 in November. This reading came in below the market expectation of 130,000. Additionally, October's reading got revised lower to 106,000 from 103,000. Other data showed that Unit Labor Costs declined by 1.2% in the third quarter.

Although the initial reaction to these data caused the benchmark 10-year US Treasury bond yield to push lower, the US Dollar (USD) managed to hold its ground.

In the meantime, US stock index futures gained traction and were last seen gaining between 0.3% and 0.5%. A bullish opening in Wall Street could make it difficult for the USD to find demand and open the door for a rebound in EUR/USD.

There won't be any other high-tier data releases in the remainder of the day and the risk perception could impact the USD's valuation.

EUR/USD Technical Analysis

The Relative Strength Index (RSI) indicator on the 4-hour chart edged slightly higher after dropping to 70, suggesting that EUR/USD could stage a correction while keeping the bearish bias.

The 200-day Simple Moving Average (SMA) and the Fibonacci 38.2% retracement level of the latest uptrend form a strong resistance for EUR/USD at 1.0820. In case the pair rises above that level, 1.0850 (static level) could be seen as the next bullish target ahead of 1.0900 (Fibonacci 23.6% retracement, 100-period SMA).

On the downside, a daily close below 1.0800 (psychological level) could attract sellers and cause EUR/USD to push lower toward 1.0760 (Fibonacci 50% retracement, 200-period SMA on the 4-hour chart).

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

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.