Daily Price Outlook
The EUR/USD ended the day at $1.1275 after reaching a high of $1.1305 and a low of $1.1234.The EUR/USD pair surged on Monday and managed to recover half of its previous day’s losses amid the declining price of the US dollar. The DXY was low on Monday after it reached 96.55 levels, despite the looming Omicron variant fears and its impact on global economic recovery. It looks like traders were off to book profits while entering the holiday season with less participation from them.
At 14:00 GMT, the current account balance of the whole Eurozone dropped to 18.1B against the forecasted 20.3B and weighed on the single currency Euro, limiting the gains in the EUR/USD pair. From the US side, the CB Leading Index rose to 1.1%, against the predicted 0.9%, and supported the US dollar, capping further gains in the EUR/USD pair.
Furthermore, the single currency euro was moving higher on Monday and was the best performing G10 currency during the session, mainly because of the news that the European Union drug regulators gave the green light to a fifth COVID-19 vaccine for use in the 27th nation bloc. The European Medicines Agency decided to grant conditional marketing authorization for the vaccine for people aged 18 and over, developed by US biotech company Novavax.
The euro's strength was also aided by a reduction in risk-off market sentiment after countries around the world decided to reduce the wait time for a booster shot of vaccine from 6 months to as little as 3.This decision came after the Omicron variant started to spread rapidly and was more immune against COVID-19 vaccines than its predecessor, the Delta variant. The hope that the booster shot would provide a fair chance against the Omicron variant brought back risk appetite and supported riskier currency pairs like EUR/USD.
EUR/USD Intraday Technical Levels
Daily Technical Levels
Pivot Point: 1.1271
EUR/USD - Technical Outlook
On Tuesday, the EUR/USD is trading at the 1.1279 level, gaining immediate support at the 1.1272 level. The direct currency pair’s immediate resistance stays at 1.1307 level, and the closing of candles below mark is adding a bearish pressure on it. A rise in buying pressure and break above 1.1307 resistance level exposes the pair towards 1.1340 or 1.1379 resistance levels.
Alternatively, the support levels continue to hold at 1.1240 and 1.1203. A bearish breakout increases the chances of a downtrend until the 1.1158 support zone. All the best!
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