EUR/USD extends sideways grind around 1.1300
EUR/USD continues to fluctuate in a very tight range around 1.1300 on Monday as trading volumes remain thin following the Christmas break. There won’t be any high-tier data releases in the remainder of the day and subdued trading action is likely to remain unchanged.
The EUR/USD pair keeps hovering around a Fibonacci level, the 23.6% retracement of its November decline at 1.1305, stuck around it since late November. The daily chart offers a neutral-to-bearish stance, as the 20 SMA is flat around the mentioned level, while the longer ones head firmly lower well above the current level. In the meantime, technical indicators are flat around their midlines.
The 4-hour chart shows that the pair hovers around its 100 and 200 SMAs, while technical indicators lack directional strength right below their midlines. The 20 SMA heads firmly higher above the longer ones but acts as an intraday dynamic resistance.
Support levels: 1.1250 1.1210 1.1185
Resistance levels: 1.1345 1.1380 1.1425
Fundamental Overview
| GMT | EVENT | VOL. | ACTUAL | CONSENSUS | PREVIOUS |
|---|---|---|---|---|---|
| MONDAY, DEC 27 | |||||
| 24h | CAD Boxing Day (observed) | ||||
| 16:30 | USD 3-Month Bill Auction | 0.085% | 0.075% | ||
| 18:00 | USD 2-Year Note Auction | 0.769% | 0.623% | ||
| 20:30 | USD CFTC Gold NC Net Positions | $202.4K | |||
| 20:30 | USD CFTC Oil NC Net Positions | 347.1K | |||
| 20:30 | USD CFTC S&P 500 NC Net Positions | $167.8K | |||
| 20:30 | GBP CFTC GBP NC Net Positions | £-50.7K | |||
| 20:30 | JPY CFTC JPY NC Net Positions | ¥-53.5K | |||
| 20:30 | EUR CFTC EUR NC Net Positions | €-11.9K | |||
| 20:30 | AUD CFTC AUD NC Net Positions | $-81.8K |
The EUR/USD pair trades in a 30 pips range above the 1.1300 level, directionless amid the absence of volume. Markets are in winter holidays’ mode, which means volumes are down to minimums while the macroeconomic calendar has nothing to offer.
Most stocks markets are operative, although the action there is also limited. Nevertheless, most European indexes are up, providing support to Wall Street. Meanwhile, government bond yields ticked lower, with the US 10-year Treasury note yielding around 1.49% at the time being.
Generally speaking, investors’ mood improved amid news suggesting that the Omicron coronavirus variant is much less serious than the previously known strains, despite being highly contagious.
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