EUR/USD Current price: 1.0392
- The US Dollar gathered momentum as the sentiment soured in Europe.
- Action across financial boards is limited in a holiday-shortened week.
- EUR/USD is under pressure, with lower lows for the day likely.
The EUR/USD pair trades with a soft tone on Monday, with the US Dollar (USD) regaining its strength in a holiday-shortened week. The pair started the day trading at around 1.0430 but currently stands below the 1.0400 mark as the market mood soured throughout the day.
Asian shares turned north, weighing on the USD demand, although the sentiment deteriorated in Europe, with most local indexes turning red and providing near-term support to the American currency. However, activity is well-limited amid winter holidays and celebrations. Most major markets will close on Tuesday, with the holiday extending up to Thursday in Europe.
Data-wise, the macroeconomic calendar has little to offer. Germany published the November Import Price Index, up 0.9% in the month. Later in the day, the United States (US) will release the November Chicago Fed National Activity Index and December CB Consumer Confidence, foreseen at 112.9, up from the previous 111.7.
EUR/USD short-term technical outlook
The daily chart for the EUR/USD pair shows the risk skews to the downside. The pair develops far below all its moving averages, with the 20 Simple Moving Average (SMA) heading south far below the 100 and 200 SMA, which also gain downward strength. Technical indicators, in the meantime, have resumed their declines within negative levels, in line with the ongoing selling pressure.
The near-term picture is also bearish. EUR/USD has fallen below a bearish 20 SMA after starting the day above it, finding intraday resistance around it, currently at 1.410. At the same time, the Momentum indicator retreated sharply from near overbought readings and is currently about to cross its 100 line into negative territory. Meanwhile, the Relative Strength Index (RSI) indicator also heads south, but at 41, in line with lower lows for the day.
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 struggles to hold above 1.0400 as mood sours
EUR/USD stays on the back foot and trades near 1.0400 following the earlier recovery attempt. The holiday mood kicked in, keeping action limited across the FX board, while a cautious risk mood helped the US Dollar hold its ground and forced the pair to stretch lower.
GBP/USD approaches 1.2500 on renewed USD strength
GBP/USD loses its traction and trades near 1.2500 in the second half of the day on Monday. The US Dollar (USD) benefits from safe-haven flows and weighs on the pair as trading conditions remain thin heading into the Christmas holiday.
Gold hovers around $2,610 in quiet pre-holiday trading
Gold struggles to build on Friday's gains and trades modestly lower on the day near $2,620. The benchmark 10-year US Treasury bond yield edges slightly higher above 4.5%, making it difficult for XAU/USD to gather bullish momentum.
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
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.