• Persistent USD selling bias helped build on the overnight goodish up-move.
• Thin liquidity conditions holding traders from placing any aggressive bets.
• Traders now eye prelim German CPI/second-tier US data for fresh impetus.
The EUR/USD pair trimmed a part of its early gains to fresh weekly tops but has managed to hold with modest daily gains, around the 1.1450 region.
The pair built on previous session's strong up-move of around 100-pips and continued gaining positive traction for the second consecutive session amid the prevalent US Dollar selling bias.
The partial US government shutdown coupled with fears of a possible economic slowdown in the US kept exerting downward pressure on the greenback and pushed the pair to a fresh weekly high level of 1.1467.
The uptick, however, lacked strong conviction/follow-through as traders now seemed to keep positions rather light amid thin liquidity conditions ahead of the year-end holidays.
Moving ahead, today's release of the prelim German consumer inflation figures, followed by second-tier US economic data - Chicago PMI and pending home sales data, will now be looked upon for some fresh impetus.
Technical levels to watch
EUR/USD
Overview:
Today Last Price: 1.145
Today Daily change: 10 pips
Today Daily change %: 0.0874%
Today Daily Open: 1.144
Trends:
Previous Daily SMA20: 1.1369
Previous Daily SMA50: 1.1374
Previous Daily SMA100: 1.1478
Previous Daily SMA200: 1.1675
Levels:
Previous Daily High: 1.1454
Previous Daily Low: 1.1348
Previous Weekly High: 1.1486
Previous Weekly Low: 1.1302
Previous Monthly High: 1.15
Previous Monthly Low: 1.1216
Previous Daily Fibonacci 38.2%: 1.1414
Previous Daily Fibonacci 61.8%: 1.1389
Previous Daily Pivot Point S1: 1.1374
Previous Daily Pivot Point S2: 1.1308
Previous Daily Pivot Point S3: 1.1268
Previous Daily Pivot Point R1: 1.148
Previous Daily Pivot Point R2: 1.152
Previous Daily Pivot Point R3: 1.1586
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
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Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
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Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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