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EUR/USD Forecast: Could Extend Slump Toward 1.1080

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EUR/USD Forecast: Could Extend Slump Toward 1.1080

EUR/USD Current Price: 1.1167

  • The American dollar benefited from dissipating risk-appetite.
  • Final December Manufacturing PMI suffered minor revisions in the EU and the US.
  • EUR/USD has turned bearish in the short-term, could extend slump toward 1.1080.

The EUR/USD is ending the day with losses, as the positive sentiment seen at the opening dissipated as the day gone by. The pair, however, remained confined to a tight intraday range as thin volumes persist. It topped at 1.1224, falling to 1.1163 during US trading hours. The dollar edged higher particularly against its high yielding rivals, easing, however, against those considered safe-havens. Wall Street opened with a strong note and continued to reach all-time highs.

Data failed to impress, with modest revisions to Markit Manufacturing PMI in both economies. The final version of the December German index was revised to 43.7 from 43.4, while for the whole Union, it resulted at 46.3 vs. the previous 45.9. On the contrary, the US one was downwardly revised to 52.4 from a preliminary estimate of 52.5.

This Friday, Germany will release the preliminary estimate of its December inflation, foreseen at 1.4% YoY, while the US will publish the official ISM Manufacturing PMI, expected in December at 49 from the previous 48.1, and the FOMC Meeting’s Minutes.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair is trading around the 38.2% retracement of its latest daily advance, bearish in the short-term. The 4-hour chart shows that the pair has extended its decline below a bullish 20 SMA, although it holds above bullish larger ones. Technical indicators, in the meantime, retain their sharp downward slopes within negative levels, coming straight from overbought levels.

Image by angelo luca iannaccone from Pixabay

 

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Posted-In: EUR/USD European UnionNews Eurozone Forex Global Markets General

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