EUR/USD Analysis – December 01, 2021

Daily Price Outlook

The EUR/USD currency pair was closed at $1.1336 after hitting a high of $1.1384 and a low of $1.1236. The currency pair EUR/USD reversed course on Tuesday and surged for the session amid the fresh weakness of the US dollar. The US Dollar Index, which measures the greenback's value against a basket of six major currencies, fell on Tuesday to 95.52 and weighed on the greenback, which added further gains to the EUR/USD currency pair. The US dollar was low on Tuesday after the macroeconomic data from the country came in against its favour, despite the hawkish comments from the US Fed chairman, Jerome Powell, on the day.

According to Powell, the Fed was waiting for the next policy meeting to discuss accelerating the pace of tapering bond purchases. These comments should have triggered an upward momentum in the greenback but failed to do so as the negative pressure followed by the unfavourable macroeconomic data outpaced the effect of Powell's hawkish comments and weighed on the US dollar, which added further gains in EUR/USD.

On the data front, at 12:45 GMT, the French Consumer Spending dropped to -4.4% against the forecasted 0.0% and weighed on the Euro, which weighed on the single currency euro and capitulated further gains in the EUR/USD pair. The French Prelim CPI surged by 0.4% against the predicted 0.4%, which supported the Euro and added further gains in EUR/USD. French preliminary GDP for the quarter remained flat at 3.0%.

At 13:55 GMT, the German Unemployment Change dropped to -34K against the forecasted-25K and supported the Euro to add further gains in EUR/USD. At 15:00 GMT, the CPI Flash Estimate for the year surged to 4.9% against the anticipated 4.5%, which supported the Euro and pushed EUR/USD further to the upside. The Core CPI Flash Estimate also surged to 2.6% against the anticipated 2.3% and added strength to the Euro, which pushed EUR/USD higher. The Italian prelim CPI also increased to 0.7%, against the projected 0.1%, and supported the euro, which pushed EUR/USD further to the upside.

At 19:00 GMT, the HPI declined to 0.9% against the anticipated 1.2% and weighed on the US dollar, adding further gains in EUR/USD. The S&P/CS Composite-20 HPI fell to 19.1% from 19.3% expected, weighing on the US dollar and adding to EUR/USD gains. At 19:45 GMT, the Chicago PMI also dropped to 61.8 against the forecasted 67.1 and weighed on the US dollar, which pushed EUR/USD further to the upside. At 20:00 GMT, the CB Consumer Confidence also fell to 109.5 from the anticipated 110.8, which weighed the US dollar and pushed EUR/USD higher.

EUR/USD Intraday Technical Levels

Support Resistance

1.1252 1.1400

1.1170 1.1466

1.1105 1.1548

Pivot Point: 1.1318

EUR/USD - Technical Outlook

On Wednesday, the EUR/USD is trading sideways in a narrow trading range of 1.1385 – 1.1255 level. The violation of this determines further trends in the pair. However, the investors seem to wait for the US NFP figures later this week.

On the bearish side, a breakout of 1.1318 levels exposes the EUR/USD pair towards 1.1255 or 1.1175 levels. Further on the lower side, the next support prevails at 1.1155. Conversely, the resistance stays at 1.1382, and above this, 1.1466 and 1.1550 will be acting as a resistance for now, all the best!