• Remains capped at 1.1660 support turned resistance.
• US macro data and Fed decision hold the key.
The EUR/USD pair extended its range-bound price action and remained capped below 1.1660 support turned resistance.
Against the backdrop of last week's dovish ECB tapering decision, Tuesday's softer-than-expected October flash EZ inflation print partly negated upbeat growth figures and did little to provide any immediate respite for the shared currency.
• Eurozone: Strong yet slightly diminishing economic momentum - Raboban
Adding to this, resurgent US Dollar demand, backed by a renewed pickup in the US Treasury bond yields and supported by Tuesday's strong second-tier US economic data, further collaborating towards capping the pair.
Despite the negative factors, the pair lacked any bearish pressure are traders seemed reluctant to place aggressive bets ahead of a busy second half of the week.
• EUR futures: rallies remain tepid
Today's US economic docket features the release of ADP report on private sector employment and the ISM manufacturing PMI print, which would be looked upon for some short-term trading opportunities ahead of the key FOMC decision.
This, along with the closely watched US monthly jobs report, popularly known as NFP and due for release on Friday, would also play an important role in determining the pair's next leg of directional move.
Technical levels to watch
Any weakness below 1.1625 level is likely to find support near the 1.1600 handle, which if broken now seems to pave way for extension of the pair's near-term downward trajectory towards 1.1550 intermediate support en-route the key 1.15 psychological mark.
On the upside, 1.1660 area, closely followed by the 1.1690 region (100-day SMA) are likely to act as an immediate hurdle, above which a bout of short-covering could lift the pair towards 1.1750 horizontal resistance ahead of 1.1780 level.
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 hung out to dry on familiar low end
AUD/USD tried and failed to spark a bull run during the first trading session of 2025, rising on thin volumes before collapsing back into the 0.6200 handle in the later hours of the day. A broad-market push into the safe haven Greenback kept the Aussie pair on the defensive, and the AUD is mired in congestion on the weak side of two-year lows.
USD/JPY flirts with multi-month highs in the 158.00 region
The USD/JPY pair traded as high as 157.84 on Thursday, nearing the December multi-month high of 158.07. Additional gains are on the docket amid prevalent risk aversion.
Gold flat lines above $2,650 ahead of US PMI release
Gold price consolidates its gains near $2,660 after reaching a two-week high during the early Asian session on Friday. The safe-haven flows amid the geopolitical tensions provide some support to the precious metal.
Could XRP surge to new highs in January 2025? First two days of trading suggest an upside bias
Ripple's XRP is up 7% on Thursday, extending its rally that began during the New Year's Day celebration. If long-term holders continue their recent accumulation, XRP could overcome the $2.9 resistance level and aim for a new all-time high.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
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.