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EUR/USD Forecast: Neutral In The Short-Term, Needs To Break Beyond 1.1920

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EUR/USD Forecast: Neutral In The Short-Term, Needs To Break Beyond 1.1920

EUR/USD Current Price: 1.1878

  • Market players remain optimistic about easing political tensions in the US and vaccine hopes.
  • US Consumer Confidence plummeted in November according to the Conference Board.
  • EUR/USD is neutral in the short-term, needs to break beyond 1.1920.

The EUR/USD pair seesawed between gains and losses this Tuesday, ending the day with gains near a daily high at 1.1893. The EUR found support on local data, as the German Q3 GDP was upwardly revised to 8.5%, while the November IFO survey on Business Climate met expectations with 90.7. The assessment of the current situation beat expectations, although expectations contracted by more than anticipated.

The greenback recovered ahead of Wall Street’s opening but fell under selling pressure after US Consumer Confidence fell in November to 96.1 from 101.4 in the previous month, according to the Conference Board. Meanwhile, news that US President Trump has agreed with the transition process with Joe Biden and vaccine hopes lifted the market’s mood.

Wednesday will be quite a busy day in the US, as the country will publish October Durable Goods Orders and the second estimate of Q3 GDP. Given the shortened week due to the Thanksgiving holiday, the country will also publish Initial Jobless Claims and the final version of the November Michigan Consumer Sentiment Index.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair retains its neutral technical stance in the near term, trading around 1.1880 ahead of the Asian opening. The 4-hour chart shows that the pair is trading a few pips above a directionless 20 SMA, after meeting buyers around the 100 SMA on Monday. Technical indicators are stuck to their midlines, lacking directional strength. The pair needs to clear the 1.1920 resistance area to actually turn bullish, while the risk will turn to the downside on a break below 1.1810.

Support levels: 1.1860 1.1810 1.1770  

Resistance levels: 1.1920 1.1960 1.2010

View Live Chart for the EUR/USD

Image sourced from Pixabay

 

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