EUR/USD Analysis – December 27, 2021

Daily Price Outlook

The EUR/USD opened its day on Monday with consolidated momentum as investors struggled to give the currency pair a significant direction. The pair is almost flat and finding it hard to decide a direction to continue its movement. It is hovering around the $1.1320 level.

The US Dollar Index, which measures the value of the U.S. dollar against a basket of six major currencies, was somewhat green on board amid the return of investors from the Christmas holidays. However, the DXY was still consolidating and stalled at the 96.10 level. The slightly bullish tone surrounding the U.S. dollar kept the currency pair EUR/USD under pressure on Monday.

Furthermore, the rising spread of the Omicron variant in European countries prompted leaders to reinstate coronavirus restrictions. Portugal and Germany announced post-Christmas curbs and greater social distancing measures. Spain and France published the highest number of daily cases since the pandemic, as France topped 100,000 daily cases. The World Health Organization has also cautioned that the rising number of cases across Europe could push their health systems towards the brink of collapse.

Finland has ordered bars and restaurants to close at 18:00 from December 28 with limited seating for three weeks. Germany also announced that small gatherings of 10 people and nightclubs would not be allowed from December 28. In France, children between the ages of 5 and 11 are vaccinated, and Spain is discussing implementing new restrictions. According to the latest EU figures, Europe has already seen more than 89 million cases with 1.5 million deaths, and the figures are rising continuously, driving the euro to the downside.

Meanwhile, the latest accusation by Poland against Russia to limit the deliveries of gas to Europe and denounced that it was causing Germany’s resale of gas to Poland to be expensive. However, on Friday, Russian President Vladimir Putin denied these accusations and said that Poland had sidelined Russia in managing the pipeline. Due to the Christmas holidays, there was no macroeconomic data release from Europe or the U.S. side, and the currency pair EUR/USD remained at the mercy of investor behavior for the time being.

EUR/USD Intraday Technical Levels

Daily Technical Levels

Support Resistance

1.1314 1.1329

1.1305 1.1335

1.1299 1.1344

Pivot Point: 1.1320

EUR/USD - Technical Outlook 

The EUR/USD is trading at the 1.1321 level, gaining immediate support at the 1.1301 level. The direct currency pair’s immediate resistance stays at 1.1337 level, and the closing of candles below the mark adds a bearish pressure on it. A rise in buying pressure and break above 1.1337 resistance level exposes the pair towards 1.1360 or 1.1410 resistance levels. Alternatively, the support levels continue to hold at 1.1308 and 1.1230. A bearish breakout increases the chances of a downtrend until the 1.1197 support zone. All the best!