EUR/USD Trying to Hold Above 1.0800, Sees Limited Recovery After Monday Backslide

FXStreet
Updated Dec 5, 2023 01:28
Mitrade
coverImg
Source: DepositPhotos

■  The EUR/USD is down half a percent on Monday after an early decline.

■  1.0800 is the level for bears to beat ahead of Friday’s US NFP.

■  US ISM Services PMI due on Tuesday, EU Retail Sales on Wednesday.


The EUR/USD shed half a percent as broader markets tossed aside sentiment and flipped risk averse to kick off the new trading week. The Euro (EUR) slipped two-thirds of a percent from Monday’s high of 1.0876 against the US Dollar (USD), setting into a fresh two-week low for the EUR/USD near 1.0804.


The EUR/USD’s latest drop brings the pair into challenging range of the 1.0800 handle, and the trading week sees Eurozone Retail Sales on Wednesday following an update on the US’ ISM Services Purchasing Managers’ Index (PMI) on Tuesday.

US Factory Orders saw a worse-than-expected decline on Monday, helping to drive back market sentiment and sour the mood, keeping the US Dollar well-bid across the board. US Factory Orders in October missed the market forecast of -2.6%, declining to -3.6% and September’s Factory Orders also saw a downside revision from 2.8% to 2.3%.


The US ISM Services PMI on Tuesday is forecast to see a slight improvement from 51.8 to 52.0 in November, On the EU side, the Eurozone Retail Sales figure for the annualized period into October is expected to improve, but still remain negative at -0.9% compared to September’s YoY print of -2.9%.


The trading week will wind up tighter the closer we get to Friday’s US Nonfarm Payrolls (NFP), and investors will be keeping a close eye on the US’ monthly labor report with the Federal Reserve (Fed) abandoning forward guidance and leaving markets to roil on a case-by-case basis with US economic data.


EUR/USD Technical Outlook

The EUR/USD’s half-percent backslide on Monday sees a fresh two-week low for the pair, and near-term price action is capped off by a 200-hour Simple Moving Average (SMA) NEAR 1.0920.

EUR/USD Hourly Chart, Source: FXStreet.


Despite the EUR/USD notching in a fourth-straight down day, the pair is set up for a bounce from the 200-day SMA just above 1.0800 if bulls are able to collect enough momentum to price out a technical correction towards the upside.


The near-term ceiling on daily candlesticks sits just north of the 1.1000 handle that the EUR/USD saw a clean rejection from last week, while an extended breakdown from here will see bears taking a run at the 50-day SMA turning bullish just below the 1.0700 handle.

EUR/USD Daily Chart, Source: FXStreet.


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Do you find this article useful?
Related Articles
placeholder
Goldman: Trump re-election to hit Eurozone GDP, earningsIn the wake of recent events, prediction markets are now assigning a high probability, or around 70%, to a Donald Trump re-election.
Author  Investing.com
In the wake of recent events, prediction markets are now assigning a high probability, or around 70%, to a Donald Trump re-election.
placeholder
Japanese Yen experiences volatility due to more FX intervention risksThe Japanese Yen (JPY) trims its gains as the US Dollar (USD) strengthens, buoyed by improved Treasury yields. However, the JPY's volatility is anticipated to persist amid speculation of intervention by Japanese authorities following weaker-than-anticipated US Consumer Price Index (CPI) figures.
Author  FXStreet
The Japanese Yen (JPY) trims its gains as the US Dollar (USD) strengthens, buoyed by improved Treasury yields. However, the JPY's volatility is anticipated to persist amid speculation of intervention by Japanese authorities following weaker-than-anticipated US Consumer Price Index (CPI) figures.
placeholder
EUR/USD trims gains and snaps seven-day win streak ahead of Fed policy updateEUR/USD stumbled on Monday after a muddled election outcome in France leaves policy guidance unclear for the Euro bloc.
Author  FXStreet
EUR/USD stumbled on Monday after a muddled election outcome in France leaves policy guidance unclear for the Euro bloc.
placeholder
EUR/USD Price Analysis: Holds position around 1.0850 due to bullish biasEUR/USD halts its seven-day winning streak, trading around 1.0830 during the Asian hours on Monday. The renewed demand for the US Dollar (USD) puts pressure on the EUR/USD pair.
Author  FXStreet
EUR/USD halts its seven-day winning streak, trading around 1.0830 during the Asian hours on Monday. The renewed demand for the US Dollar (USD) puts pressure on the EUR/USD pair.
placeholder
EUR/USD holds position around 1.0800 as softer US data escalate odds of Fed rate cutsEUR/USD continues its winning streak, trading around 1.0790 during the Asian session on Thursday.
Author  FXStreet
EUR/USD continues its winning streak, trading around 1.0790 during the Asian session on Thursday.