EURUSD Bears keep pressure building ahead of important Data.
The opening part of Wednesday saw the EURUSD pair remain weak, albeit with a lessened decline. While investors wait anxiously for first-tier results, the pair. Which hit a low of 1.0915 during European trading hours, continues to be negative as Wall Street opens.
The December German Unemployment Rate was confirmed to be 5.9%, unchanged from the previous month. According to the macroeconomic calendar. Additionally, MBA Mortgage Applications were released by the US for the week. That concluded on December 29, a 10.7% decline. Nevertheless, since it happened over the winter holidays, the decline is meaningless.
Investors continue to purchase US dollars ahead of important job and growth statistics.
Following the American opening, attention will turn to the US ISM Manufacturing PMI, which is expected to be 47.1 in December, slightly better than 46.7 in November but still within contractionary ranges. In conjunction with this, the nation will make available November JOLTS Job Openings, which is pertinent prior to Friday’s Nonfarm Payrolls (NFP) data. Ultimately, the Federal Open Market Committee (FOMC) Minutes will take center stage in the US afternoon since they may offer hints about impending rate reduction.
EURUSD Technical Outlook
The EURUSD pair is trading lower despite a slight recovery from the previously noted intraday low. The daily chart’s technical indications point to a drop. might go on as the indications keep sliding, now moving lower within neutral levels. The pair is currently dueling around a 20 Simple Moving Average (SMA) that is still bullish, while the lengthier ones are still pointing in the wrong direction below the present level.
The short-term outlook shows that the risk is skewed downward. Around a directionless 200 SMA, there were short-term buyers for EURUSD on the 4-hour chart.
However, the pair eventually developed below the 20 and 100 SMAs. With the shorter one acquiring downward momentum. Last but not least, technical indicators are still in negative territory. The Relative Strength Index (RSI) indicator. For example, is still showing bearish slope at approximately 27, showing no signs of exhaustion.
