EUR/USD Cycles Below 1.1000 in Pre-holiday Market Churn

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

■  EUR/USD consolidated on Wednesday, slipping from 1.0980 to 1.0930.

■  Markets saw a steady risk bid that kept the USD pinned until a late-day break.

■  Up next: Thursday US GDP.


The EUR/USD drifted lower on Wednesday, falling back into 1.0930 late in the day after slipping from the day’s opening bids near 1.0980 with the pair capped just beneath the 1.1000 handle.


Markets broadly went risk-on after US Consumer Confidence and US Existing Sales revealed better-than-expected figures in both indicators. Risk assets gained some ground and the US Dollar (USD) slipped slightly as markets gear up for the holiday wrap-up.


US consumers are more upbeat about the US economy in December, with the US Consumer Confidence Index rising to 110.7 versus November’s 101.0, which was revised down from 102.0.


US Existing Home Sales also improved by 0.8% in November, rebounding from October’s -4.1%.


Eurozone Consumer Confidence for December also improved, but remained firmly lower compared to consumers’ faith in the US economy. Eurozone December Consumer Confidence rose to -15.1, still in negative territory but cautiously optimistic, recovering from November’s -16.9, and rebounding over the market’s median forecast of -16.4.


Coming up on Thursday will be US Gross Domestic Product (GDP), and markets are expecting US GDP in the third quarter to hold steady at 5.2%.


EUR/USD Technical Outlook

The EUR/USD is firmly planted within the week’s trading range, caught between 1.0980 and 1.0930. Intraday action has been drawing tight this week as investors gear up for the holiday break, pushing the Euro into the midrange against the US Dollar.


Daily candlesticks have the EUR/USD pinned into the top end just below the 1.1000 handle, with prices getting back on the north side of the 200-day Simple Moving Average (SMA) near 1.0850.

EUR/USD Hourly Chart, Source: FXStreet


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.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
USD/JPY retreats from 147.15 as risk aversion eases ahead of the FOMC MinutesThe pair appreciated about 1.5% over the previous two days, after a letter from President Trump announced 25% tariffs on all products from Japan, and moved the deadline to August 1 from the original July 9.
Author  FXStreet
17 hours ago
The pair appreciated about 1.5% over the previous two days, after a letter from President Trump announced 25% tariffs on all products from Japan, and moved the deadline to August 1 from the original July 9.
placeholder
US Dollar Index (DXY) consolidates above 97.00 with tariffs weighing on sentimentThe US Dollar Index, which measures the USD against a basket of currencies, is trimming previous gains as risk aversion eases somewhat during the early European session.
Author  FXStreet
18 hours ago
The US Dollar Index, which measures the USD against a basket of currencies, is trimming previous gains as risk aversion eases somewhat during the early European session.
placeholder
NZD/USD is struggling to regain the 0.6000 level after the RBNZ’s “dovish hold”The New Zealand Dollar picked up as the market digested the RBNZ’s dovish statement and tested the 0.6000 psychological level, as the market mood brightened somewhat in Wednesday’s early European session.
Author  FXStreet
19 hours ago
The New Zealand Dollar picked up as the market digested the RBNZ’s dovish statement and tested the 0.6000 psychological level, as the market mood brightened somewhat in Wednesday’s early European session.
placeholder
AUD/JPY hovers around 96.00 after pulling back from five-month highsAUD/JPY continues its winning streak for the third successive session, trading around 95.80 during the European hours on Wednesday.
Author  FXStreet
19 hours ago
AUD/JPY continues its winning streak for the third successive session, trading around 95.80 during the European hours on Wednesday.
placeholder
EUR/USD hesitates near weekly lows as trade tensions growThe EUR/USD pair is practically flat on Wednesday, near the bottom of the weekly range.
Author  FXStreet
19 hours ago
The EUR/USD pair is practically flat on Wednesday, near the bottom of the weekly range.