EUR/USD Current price: 1.0377
- Stronger than anticipated, United States data fueled demand for the US Dollar.
- The US will publish the November PCE Price Index on Friday, Fed’s favorite inflation gauge.
- EUR/USD resumed its slide after correcting oversold conditions, fresh lows in sight.
The EUR/USD pair trades around 1.0360 in the mid-American session, retreating from an intraday peak of 1.0421. The US Dollar (USD) shed some ground throughout the first half of the day after reaching extreme overbought conditions following the Federal Reserve's (Fed) monetary policy decision on Wednesday.
The USD, however, recovered its poise ahead of Wall Street’s opening, as upbeat United States (US) macroeconomic data aligned with policymakers’ economic perspective. The country published the Q3 Gross Domestic Product (GDP), which suffered an upward revision. Annualized growth was confirmed at 3.1%, against the 2.8% previously estimated. Meanwhile, Initial Jobless Claims for the week ended December 13 declined to 220K from 242K in the previous week, also beating the expected 230K.
Earlier in the day, the Eurozone released the October Current Account, which posted a seasonally adjusted surplus of €26 billion, missing the expected €33.5 billion.
On Friday, the US will publish the November Personal Consumption Expenditures (PCE) Price Index, the Fed’s favorite inflation gauge. The report will likely have a limited impact after the latest Fed’s announcement. The country will also release the December Michigan Consumer Sentiment Index, while the EU will offer the preliminary estimate of December Consumer Confidence.
EUR/USD short-term technical outlook
The EUR/USD pair heads into the Asian opening trading at around 1.0370 and seems poised to extend its slide. The pair is developing below all its moving averages, with the 20 Simple Moving Average (SMA) heading firmly lower at around 1.0500, also below bearish 100 and 200 SMAs. At the same time, technical indicators stand well into negative territory, offering modest downward slopes, reflecting sellers’ dominance.
The bearish case is also clear in the near term. The 4-hour chart shows that technical indicators resumed their slides after correcting extreme oversold readings and hold well below their midlines, albeit with limited directional strength. At the same time, the 20 SMA accelerated lower, extending its slide below the longer ones while above the current level.
Support levels: 1.0330 1.0290 1.0250
Resistance levels: 1.0400 1.0440 1.0485
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
AUD/USD remains tepid following PBoC monetary policy decision
AUD/USD retraces its recent gains from the previous session against the US Dollar following the People’s Bank of China’s monetary policy decision on Friday. China’s central bank decided to keep its one- and five-year Loan Prime Rates unchanged at 3.10% and 3.60%, respectively, in the fourth quarterly meeting.
USD/JPY: Japanese Yen bulls remain on the sidelines despite strong Japan’s National CPI print
The Japanese Yen adds to the post-BoJ losses and drops to a five-month low against the USD. The Fed’s hawkish shift remains supportive of elevated US bond yields and undermines the JPY. A stronger-than-expected Japan’s National CPI keeps the door open for a BoJ rate hike in 2025.
Gold price oscillates in a range below $2,600 amid mixed cues
Gold price consolidates below the $2,600 mark following the previous day's good two-way price move and remains close to over a one-month low. The Fed signaled a cautious path of policy easing next year, which remains supportive of elevated US bond yields and assists the USD in standing firm near a two-year high.
Bitcoin's trajectory shows similarities with previous cycles as long-term holders book profits of $2.1 billion
Glassnode's Week on Chain report revealed the similarities between the current Bitcoin uptrend and previous cycles amid changing market conditions. Meanwhile, long-term investors began distributing their tokens at the $100K level, culminating in a new all-time high of $2.1 billion in realized profits.
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.