EUR/USD Current price: 1.0392
- Unimpressive macroeconomic data left EUR/USD trading on sentiment.
- Action across financial boards is limited in a holiday-shortened week.
- EUR/USD settled around 1.0400 and is technically neutral in the near term.
The EUR/USD pair finishes the American session as it started it, trading around the 1.0400 threshold. Financial markets are in a winter holiday mood, with Christmas around the corner interrupting activity. The US Dollar (USD) seesawed alongside sentiment, trading within familiar levels throughout the day.
Mixed macroeconomic data was unimpressive. On the one hand, Germany published the November Import Price Index, up 0.9% in the month. On the other, European Central Bank (ECB) President Christine Lagarde commented on monetary policy, repeating that the ECB will further cut interest rates if incoming data confirm that disinflation is on track, adding the Eurozone growth will likely take a hit from fresh United States (US) protectionist measures.
As for the US, the country released November Durable Goods Orders, which fell 1.1% in November, worse than the 0.4% decline expected. Additionally, CB Consumer Confidence edged sharply lower in December, falling to 104.7 from 112.8 in November and missing the expected 112.9. Finally, New Home Sales were up 5.9% in November, improving from -14.8% in the previous month.
The macroeconomic calendar has nothing relevant to offer in the upcoming days, with European markets returning on Friday.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart for EUR/USD suggests bears retain control. The pair develops below all its moving averages, with a mildly bearish 20 Simple Moving Average (SMA) well above the current level yet far below the 100 and 200 SMA, which also gain downward strength. Technical indicators, in the meantime, head south within negative levels, in line with the ongoing selling pressure.
The near-term picture is also bearish. In the 4-hour chart, the EUR/USD pair hovers around a bearish 20 SMA. The longer moving averages maintain modest downward slopes above the current level. Finally, technical indicators have pierced their midlines but turned flat around them, turning neutral.
Support levels: 1.0370 1.0330 1.0290
Resistance levels: 1.0410 1.0445 1.0490
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 stays weak near 1.0400 as trading conditions thin out
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD consolidates below 1.2550 on stronger US Dollar
GBP/USD consolidates in a range below 1.2550 on Tuesday, within striking distance of its lowest level since May touched last week. The sustained US Dollar rebound and the technical setup suggest that the pair remains exposed to downside risks.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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.