Daily Price Outlook
The EUR/USD was closed at $1.1342 after placing a high of $1.1356 and a low of $1.1264. EUR/USD reversed its course on Wednesday and recovered the loss of its previous 4-sessions amid the weakness of the US dollar. The currency pair EUR/USD managed to remain green for the day despite the rising number of coronavirus cases across Europe. The European Center for Disease Protection and Control (ECDC) has warned of a rise in deaths and hospitalizations due to the novel coronavirus in upcoming weeks. According to the agency, the lack of vaccination and the spread of the new Omicron variant will exacerbate the situation.
European countries have taken various measures to combat the spread of variants, including lockdowns for the unvaccinated and early closings for restaurants and bars. Switzerland saw a heavy number of new coronavirus cases, France registered a hike in COVID hospitalizations, and the UK recorded more than 51,000 new coronavirus cases. This weekend, Austria also placed a nationwide lockdown, and Poland moved to online schooling. This situation across Europe gave a negative impression on the single currency euro, but the currency pair EUR/USD still managed to remain high for the day.
The currency pair EUR/USD found support on Wednesday after risk-appetite returned to the market due to Omicron optimism driven by the report released by Pfizer and BioNTech. Both companies said that their vaccines against coronavirus hold significant efficacy against the Omicron variant with the booster shot. This news added optimism in the market that there was no need for lockdown and travel restrictions, but only a new shot of vaccine was required and added upward pressure on risk-related currency pairs like EUR/USD.
At 11:30 GMT, the French Final Private Payrolls for the quarter remained flat with expectations of 0.5%. On the US side, at 01:00 GMT, consumer credit fell to 16.9B against the anticipated 24.9B and weighed on the US dollar. At 20:00 GMT, the JOLTS job openings increased to 11.03 million, against a projected 10.45 million, and supported the US dollar.
The macroeconomic data from the US came in mixed on Wednesday and kept the US dollar under pressure, which ultimately pushed EUR/USD higher. Furthermore, US investors were waiting for the release of the US Consumer Price Index report, which is scheduled for Friday and will have a direct impact on the decision of the Federal Reserve regarding tapering economic support and the interest rate hike decision.
EUR/USD Intraday Technical Levels
Pivot Point: 1.1321
EUR/USD - Technical Outlook
On Thursday, the EUR/USD tested the double top pattern at the 1.1354 level. Closing of candles under this level supports a selling bias in the EUR/USD. On the downside, an intraday pivot point level will be extended support at the 1.1320 mark. A surge in selling pressure can slice through the support level and expose the EUR/USD towards the 1.1284 or 1.1227 support levels.
On the other hand, the breakout of the 1.1354 level exposes the EUR/USD towards 1.1411 and the 1.1470 level. The RSI has entered the overbought zone, therefore, the bearish correction dominates below the 1.1354 level. All the best!
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