EURUSD Bears profit from weak market circumstances.
EURUSD pair continues to decline from the December high of 1.1139. Breaking through the 1.1000 barrier just in before of the US opening. As market participants come back to their desks ahead of first-tier data that might set the tone for the remainder of the month. The US dollar gains strength amid thin market circumstances. The US will soon announce employment-related statistics. While the Eurozone will provide data on inflation. of the Nonfarm Payrolls (NFP) for December, which is expected out on Friday of next week.
This week’s topics of discussion are American job data and inflation in Europe.
According to the S&P Global/Hamburg Commercial Bank monthly report, the macroeconomic calendar indicated that “the Eurozone manufacturing sector remained stuck in contraction at the end of 2023, with output continuing to fall and factory job losses extending into a seventh successive month.” Confirmed at 44.4, the December Manufacturing PMI was marginally higher than 44.2. It was claimed that the German index was 43.3. The US figure, which is anticipated to print at 48.2, will be presented during the American session.
EURUSD Technical Outlook
The EURUSD exchange rate is at its lowest point in nearly two weeks as it trades in the 1.0950 price range. The daily chart indicates a high level of selling interest. Although the argument for a sustained slump is yet unknown. The pair is holding well above all of its moving averages. Even though it has fallen for the third day in a row.
The 20 Simple Moving Average (SMA) is providing dynamic support at 1.0925. And is advancing quickly north above the lengthier ones. Technical indicators swung south at the same time, but they were still developing inside positive levels and correcting overbought situations.
The short-term outlook points to a further decline. Technical indicators on the 4-hour chart are heading lower, nearly vertically, and are currently getting close to oversold position. A slightly bearish 20 SMA on the EURUSD was broken by the pair’s rapid decline, and the support region is being bolstered by the 100 SMA, which is still bullish and located in the 1.0920 price range.
