EUR/USD Current price: 1.1368
- EU Q3 Gross Domestic Product was confirmed at 2.2% in the three months to September.
- US October Retail Sales unexpectedly increased by 1.7% MoM, much better than expected.
- EUR/USD recovered modestly from a fresh 2021 low of 1.1350.
The EUR/USD pair remains under selling pressure, trading near a fresh 2021 low of 1.1350. The greenback strengthened unevenly across the FX board, but a dismal mood keeps it on the positive side. Asian and European equities struggle around their opening levels, as US government bond yields retain their Monday’s gains.
Speculative interest is concerned about persistently high inflation and slow employment recovery forcing central banks into tighter monetary policies, while a new coronavirus wave hits Europe. Data-wise, the EU published the second estimate of its Q3 Gross Domestic Product, which was confirmed at 2.2% QoQ. Employment change in the same quarter was up 0.9%, beating expectations.
The US published October Retail Sales, which unexpectedly increased by 1.7% MoM, much better than the 1.2% expected. The core reading, Retail Sales Control Group, printed at 1.6% vs the 0.9% expected. Additionally, the US reported the October Import Price Index and the Export Price Index for the same month, which came in better than anticipated.
The positive US headlines gave a modest boost to the market’s sentiment, which in turn put some pressure on the dollar.
EUR/USD short-term technical outlook
Nevertheless, the EUR/USD pair is trading around 1.1370, not far from its intraday low. The daily chart shows that technical indicators have partially lost their bearish strength within oversold levels, while the pair keeps developing far below all of its moving averages, which maintain their strong bearish slopes.
In the near term, and according to the 4-hour chart, the risk remains skewed to the downside, although a corrective advance is not out of the cards. The pair keeps developing below all of its moving averages, while technical indicators have turned flat, the Momentum within negative levels and the RSI at around 26. A firmly bearish 20 SMA provides dynamic resistance at around 1.1425.
Support levels: 1.1350 1.1310 1.1265
Resistance levels: 1.1425 1.1470 1.1515
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
Editors’ Picks
EUR/USD stabilizes near 1.0550, looks to post weekly gains
EUR/USD continues to fluctuate in a tight channel at around 1.0550 in the American session on Friday as trading action remains subdued with US financial markets heading into the weekend early. The pair looks to end the week in positive territory.
GBP/USD loses traction, retreats below 1.2700
After climbing to its highest level in over two weeks at 1.2750, GBP/USD reverses direction and declines to the 1.2700 area on Friday. In the absence of fundamental drivers, investors refrain from taking large positions. Nevertheless, the pair looks to snap an eight-week losing streak.
Gold pulls away from daily highs, holds near $2,650
Gold retreats from the daily high it set above $2,660 but manages to stay afloat in positive territory at around $2,650, with the benchmark 10-year US Treasury bond yield losing more than 1% on the day. Despite Friday's rebound, XAU/USD is set to register losses for the week.
Bitcoin attempts for the $100K mark
Bitcoin (BTC) price extends its recovery and nears the $100K mark on Friday after facing a healthy correction this week. Ethereum (ETH) and Ripple (XRP) closed above their key resistance levels, indicating a rally in the upcoming days.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.