Market Overview

EUR/USD Forecast: Holds Neutral Around 1.2200, Limited Bearish Scope

EUR/USD Forecast: Holds Neutral Around 1.2200, Limited Bearish Scope

EUR/USD Current Price: 1.2178

  • US Durable Goods Orders rose by 0.9% in November, beating expectations.
  • Noise around the US stimulus package kept investors in cautious mode.
  • EUR/USD holds neutral around 1.2200, limited bearish scope.

The dollar edged lower against its major rivals on the last full trading day of the week. The EUR/USD pair peaked at 1.2220 and settled just below the 1.2200 figure, holding within familiar levels throughout the day. The greenback seesawed between gains and losses as investors tried to digest the latest on the US stimulus program. After the US Congress passed a coronavirus-relief bill, US President Donald Trump urged lawmakers to amend it and hasn’t signed it yet. He said that the package is full of “wasteful” items and said that the $600 payment should be $2,000.

The EU didn’t publish relevant data, while the US released encouraging figures. The country published November Durable Goods Orders, which beat expectations by rising 0.9% MoM. Initial Jobless Claims improved to 803K in the week ended December 18. Personal Income, however, decreased by 1.1% in November while Personal Spending was down 0.4%. Most countries celebrate the Christmas holiday on Thursday, and the macroeconomic calendar will remain empty.

EUR/USD Short-Term Technical Outlook

The near-term picture for the EUR/USD pair is neutral-to-bullish. The 4-hour chart shows that the pair remains below a mildly bearish 20 SMA, while a bullish 100 SMA keeps providing support. Technical indicators continue to lack directional strength around their midlines. Trading will likely remain choppy during the upcoming sessions, although Brexit-related headlines may trigger some wild movements, exacerbated by thin market conditions.

Support levels: 1.2120 1.2080 1.2030

Resistance levels: 1.2220 1.2275 1.2310

View Live Chart for the EUR/USD

Image sourced from Pixabay


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Posted-In: EUR/USD FXStreetNews Eurozone Forex Global Markets