EUR/USD is quiet, mostly stuck at the important mantle of 1.1650. Given that the currency pair continues to sustain a technically neutral stance as it firms close to its recent multi-week high. Market participants are continuing to watch important labor data from the U.S. These figures are likely to weigh heavily on the currency pair’s future directions.
EUR/USD is now just below the 100-period Simple Moving Average (SMA). This means that there is relative equality between the buying and selling pressure on the stock share. The 20-period and 200-period SMAs are below the current trading level, suggesting support if the price were to pull back. The long-term dynamic resistance from the 20-period SMA is still just above the current action. This means that unless a move up is extremely strong, it will have a hard time finding upward momentum.
EUR/USD Momentum indicator has weakened below its midline, showing a weakening trend of upward momentum. As soft as it is, the market is still above zero. It’s even stretched a tad higher, evidence that the bullish enthusiasm is still running high. The Relative Strength Index (RSI) is at 59, indicating that the risk is tilted modestly to the upside for EUR/USD.
From a technical perspective, the analysis of the 4-hour chart indicates a bullish alignment for EUR/USD. The rising 20-period SMA has recently crossed above the 100-period and 200-period SMAs. This much-improved showing lends credence to the notion that upward momentum may still be in play. The 20-day SMA at 1.1594 offers the initial technical layer of dynamic support. Further support comes in the form of 1.1593-1.1585, where the level shares confluence with the 100-period and 200-period SMAs.
Market participants can’t wait for more US economic data to come in. They are particularly looking forward to the employment numbers to be released over the week. These figures will almost certainly have a huge hand in influencing market sentiment. This policy change would likely lead to higher volatility in the EUR/USD spot rate. Investors are particularly focused on the outcomes of the upcoming December Federal Reserve monetary policy meeting, which could further influence expectations regarding interest rates and economic health.
If the price breaks below the important 100-day SMA at 1.1645, confidence from buyers could be shaken. This should be a reason to re-evaluate long EUR/USD positions. If the price breaks below this important level of support, it could be an indicator that bullish market sentiment has shifted. This transition might set off other declines as well.