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EUR/USD Upside Invalidated Again!


EUR/USD failed once again to consolidate above the 1.13 psychological level signaling that the downside pressure is high. It was located at 1.1300 at the time of writing. The Dollar Index’s rally forced the pair to come back down.

The USD was boosted by the US economic data released yesterday. The HPI rose by 1.1% versus 0.9% expected and compared to the 0.9% growth in the previous reporting period. In addition, the Richmond Manufacturing Index increased unexpectedly from 11 points to 16 points.

Today, the eurozone M3 Money Supply registered a 7.3% rise thatis below the forecast of a 7.6% increase. Private Loans rose by 4.2% as expected. Later, the US data could be decisive. Data on Goods Trade Balance, Prelim Wholesale Inventories, and the Pending Home Sales will be published. Positive US data could boost the USD, while poor figures could weaken the greenback.

EUR/USD Bearish Bias!

EUR/USD could extend its downside movement if it stays under the 1.13 psychological level, below the 23.6% retracement level, and under the weekly pivot point (1.1296). It failed once again to approcah and reach the 1.1374 static resistance signaling strong downside pressure.

Also, it failed to approach and reach the 1.1360 former high, so an upside reversal will hardly take place. A new lower low, and a drop and close below 1.1235 could activate more declines.

EUR/USD Outlook!

Staying below the weekly pivot point of 1.1296 may indicate a potential drop towards 1.1235. The short-term bearish scenario could be invalidated if the price comes back and conslidates above the pivot point and above the 23.6% (1.1304) retracement level.

A good long opportunity could be signaled by a valid breakout above 1.1374, while a larger downside movement and a new short opportunity could be confirmed by a valid breakdown below 1.1186.

The material has been provided by InstaForex Company –

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