EURUSD may struggle to recover ahead of important events.
The EURUSD fell for the second week in a row, but managed to settle around 1.0750 early Monday. The technical forecast for the pair indicates that the bearish bias remains. However, investors should avoid counting on a prolonged US Dollar (USD) surge before of this week’s crucial macroeconomic data releases and central bank meetings.
The positive November jobs report from the United States aided the USD in holding its ground ahead of the weekend on Friday. Nonfarm payrolls increased by The unemployment rate fell to 3.7% from 3.9%, which was higher than the market projection of 180,000. Following the release of the data, the benchmark 10-year US Treasury bond yield increased by about 2%, and the USD Index surged above 104.00.
The cautious market position early Monday permits the USD to remain resilient against its rivals. At the time of publication, US stock index futures were down 0.1% to 0.2% for the day.
Market investors will be watching the US Consumer Price Index (CPI) data on Tuesday intently ahead of the Federal Reserve’s policy remarks on Wednesday.
The European Central Bank (ECB) will hold its final monetary policy meeting of the year later this week.
EURUSD Technical Analysis
EURUSD is now closed. The last six 4-hour candles have closed below the 200-period Simple Moving Average (SMA), and the Relative Strength Index (RSI) indicator has failed to rise above 40, indicating a lack of buying interest. Before 1.0660 (static level), 1.0700 (psychological level, Fibonacci 61.8% retracement of the last upswing) aligns as crucial support.
On the upside, 1.0760 (Fibonacci 50% retracement, 20-period SMA) serves as immediate resistance, followed by 1.0780 (200-period SMA) and 1.0820 (Fibonacci 38.2% retracement).
