Daily Price Outlook
The EUR/USD closed at $1.1326 after hitting a high of $1.1334 and a low of $1.1302. The EUR/USD pair rose for a second session on Tuesday, owing to the weakening of the US dollar and the general risk-on market mentality. The US Dollar Index, which measures the greenback's value against a basket of six major currencies, dipped to 96.34, weighing on the greenback and ultimately driving the currency pair EUR/USD higher. Meanwhile, the euro gained traction as risk appetite returned to the market.
The Centers for Disease Control and Prevention (CDC) in the United States recently shortened the general population's isolation and quarantine time from ten days to five days. Furthermore, the market's trading sentiment was also bolstered by the remarks of US Vice President Kamala Harris, who indicated that she would use her tie-breaking vote to help President Joe Biden pass his Build Back Better (BBB) stimulus proposal. On the same page, the People's Bank of China (PBOC) and the Chinese Finance Ministry advocated more easy money to support Australia's greatest customer's economic growth.
In addition, ongoing talks over Iran's nuclear program and a worldwide drive for peace between Russia and Ukraine appear to have provided some more comfort to the markets. Thus, the positive mood in the market was seen as one of the key factors that pushed the safe-haven gold price down.
On the USD front, the US dollar failed to stop its bearish bias and is still flashing red on the day. However, the reason could be the easing of concerns about the highly infectious Omicron coronavirus variant, combined with robust US retail sales data, which drives investors into riskier assets rather than safe-haven assets like the US dollar. Thus, the muted price movement in yields and the US dollar appears to be limiting the downside in EUR/USD prices.
EUR/USD Intraday Technical Levels
Daily Technical Levels
Pivot Point: 1.1282
EUR/USD - Technical Outlook
Considering the holiday session, the technical side of the EUR/USD pair hasn't changed a lot. The EUR/USD continues to trade choppily near the 1.1321 level. It's gaining immediate support at the 1.1301 mark. The direct currency pair's next resistance holds around 1.1340 level. The formation of candles under the 1.1340 level adds selling pressure on EUR/USD. A surge in buying pressure and break above 1.1337 resistance level exposes the pair towards 1.1360 or 1.1410 resistance marks.Conversely, the support marks continue to stay at 1.1308 and 1.1230. A downward breakout boosts the chances of a downtrend until the 1.1197 support zone. All the best!
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