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EUR/USD Forecast: Continues To Consolidate 2020 Gains, With Its Bullish Potential Intact

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EUR/USD Forecast: Continues To Consolidate 2020 Gains, With Its Bullish Potential Intact

EUR/USD Current Price: 1.2299

  • Market players await the outcome of the US Georgia Senate election.
  • Focus slowly shifting towards US employment figures ahead of the NFP report.
  • EUR/USD continues to consolidate 2020 gains, with its bullish potential intact.

The EUR/USD pair has recovered some ground on Tuesday to settle around the 1.2300 figure, up for the day.  The market sentiment flipped from coronavirus-related fears to US election´s caution. Georgia is in a Senate runoff and will decide who will lead the organism under Joe Biden’s presidency.

Data was supportive, as it came in better than anticipated. Germany published November Retail Sales, which beat the market’s expectations, up by 1.9% MoM and  5.6% YoY. The unemployment rate in the country held steady at 6.1% in December, as expected. As for the US, the country released the December ISM Manufacturing PMI,  which came in at 60.7, much better than anticipated.

On Wednesday, Markit will publish the final readings of its December Services PMIs, while Germany will release December inflation figures. The US macroeconomic calendar will include the December ADP survey, with the private sector expected to have added just 88K new jobs. Later in the day, the FOMC will unveil the Minutes of its latest meeting.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair trades just below the 2020 high at 1.2309. The short-term picture is neutral-to-bullish as the price has recovered above a flat 20 SMA, while the longer moving averages continue heading higher below it. Technical indicators recovered into positive territory but quickly lost directional strength. The bullish case can gain momentum on a break above 1.2310, the immediate resistance level.

Support levels: 1.2260 1.2210 1.2170

Resistance levels: 1.2310 1.2345 1.2390

View Live Chart for the EUR/USD

 

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

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