EUR/USD: Decent bounce from 1.10 still elusive, German data eyed


  • EUR/USD's defense of 1.10 has so far failed to entice bulls. 
  • A notable bounce looks likely, courtesy of the dovish Federal Reserve. 
  • A dismal German employment data would weaken recovery prospects.

EUR/USD is struggling to chart a notable price bounce despite signs of seller exhaustion near key support.

The daily chart shows consecutive long-tailed candles, marking a bear failure to establish a secure foothold below the psychological level of 1.10. So far, however, the bulls have not been able to capitalize on the bear fatigue. 

The currency pair is currently witnessing subdued activity around 1.1015, having remained consolidative around that level in Asia. 

That said, the buyers may step in during the day ahead as the US Federal Reserve on Wednesday kept rates unchanged, but reiterated commitment to higher inflation, reinforcing expectations about further rate cuts. As per the Bloomberg report, traders ramped bets for a rate cut by November’s meeting following the Fed's statement. 

An upward move, however, will likely remain elusive and sellers may push through support at 1.10 if the German employment data pours cold water over the optimism generated by recent macroeconomic numbers like PMIs. 

The data due at 08:55 GMT is expected to show the German economy added 5K jobs in December following November's 8K additions. Meanwhile, the seasonally adjusted Unemployment Rate is forecasted to have remained unchanged at 5%. 

In the North American session, the focus would shift to the US Gross Domestic Product Price Index (Q4) PREL, scheduled for release at 13:30 GMT. 

Technical levels

EUR/USD

Overview
Today last price 1.1015
Today Daily Change 0.0008
Today Daily Change % 0.07
Today daily open 1.1007
 
Trends
Daily SMA20 1.1103
Daily SMA50 1.11
Daily SMA100 1.1072
Daily SMA200 1.1129
 
Levels
Previous Daily High 1.1028
Previous Daily Low 1.0992
Previous Weekly High 1.1118
Previous Weekly Low 1.102
Previous Monthly High 1.124
Previous Monthly Low 1.1002
Daily Fibonacci 38.2% 1.1006
Daily Fibonacci 61.8% 1.1014
Daily Pivot Point S1 1.099
Daily Pivot Point S2 1.0973
Daily Pivot Point S3 1.0954
Daily Pivot Point R1 1.1026
Daily Pivot Point R2 1.1045
Daily Pivot Point R3 1.1062

 

 

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