EUR/USD Current price: 1.0477
- Financial markets started the week in slow motion, US Dollar remains weak.
- United States markets will remain closed amid the celebration of President's Day.
- The EUR/USD pair is under pressure in the near term and could test the 1.0400 region.
The EUR/USD pair trades just short of the 1.0500 threshold on Monday, unable to extend its recent rally yet holding ground amid persistent broad US Dollar (USD) weakness. The pair hit 1.0514 on Friday, shedding a few pips ahead of the weekly close.
European data fell short of impressing, keeping Euro (EUR) gains limited. The European Union (EU) Trade Balance posted a seasonally adjusted surplus of €14.6 billion in December, improving from the €13.3 billion posted in November.
Meanwhile, Asian and European equities are giving little clues, as most indexes trade in the green, albeit with limited movements amid the poor performance of the tech sector.
Markets’ limited activity is being exacerbated by a holiday in the United States (US) as the country celebrates President’s Day, with stocks’ and bonds’ markets closed until Tuesday.
EUR/USD short-term technical outlook
The EUR/USD pair is pretty much flat on a daily basis, trading inside a limited 30-pip range. From a technical point of view, the daily chart shows the pair holds well above its 20 Simple Moving Average (SMA), which anyway has lost its upward strength and hovers around 1.0400. The 100 SMA, in the meantime, maintains its firmly bearish slope far above the current level, suggesting longer-term sellers are still present. Finally, technical indicators show contradictory directional strength yet remain within positive levels, limiting the bearish potential in the foreseeable sessions.
In the near term, and according to the 4-hour chart, the risk of another leg south has increased. Technical indicators retreated from overbought levels, and remain within positive levels, yet the Momentum indicator heads firmly south. The Relative Strength Index (RSI) indicator, in the meantime, turned flat at around 59. Finally, the EUR/USD pair develops well above all its moving averages, with a bullish 20 SMA providing dynamic support at around 1.0440. The USD may find room to recover some ground, yet in the wider perspective the risk skews to the downside.
Support levels: 1.0440 1.0400 1.0360
Resistance levels: 1.0515 1.0550 1.0590
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
U.S. Pres. Trump expected to announce reciprocal tariffs –LIVE
U.S. President Donald Trump is set to unveil the details of his reciprocal tariffs on what he dubs "Liberation Day." Markets are on high alert, bracing for increased volatility amid growing concerns that these tariffs could negatively impact both economic growth and inflation prospects.
EUR/USD looks to retest 1.0900
EUR/USD surged to multi-day highs in response to further selling pressure on the Greenback and news that the EU could be planning measures to alleviate Trump’s tariffs.
Gold looks consolidative near $3,120 ahead of Trump's “Liberation Day”
Gold is regaining momentum, climbing above $3,120 after a slight pullback from Tuesday’s near-record high of $3,150. Retreating US yields are bolstering XAU/USD, ahead of President Trump's official announcement of the reciprocal tariff measures later this Wednesday.
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
Grayscale launches Bitcoin options ETF with a focus on income generation
In a press release on Wednesday, Grayscale announced the launch of Bitcoin options-based ETFs, the Grayscale Bitcoin Covered Call ETF (BTCC) and Grayscale Bitcoin Premium Income ETF (BPI).
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.