EUR/USD Consolidates Above Critical Support
2022.12.21 04:45
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The pair trades virtually unchanged on Tuesday, holding above the 1.0600 level as investors remain in wait-and-see mode after an eventful week.
At the time of writing, the EUR/USD pair is trading flat at the 1.0610 area, having pulled back from a daily high of 1.0658. Meanwhile, the dollar measured by the posts a 0.58% daily loss at around 104.05 despite the advance of U.S. yields across the curve after the Bank of Japan policy tweak.
On the data front, the German grew by 28.2% over the 12 months to November, decelerating from its previous rate of 34.5% and below the market’s consensus of 30%.
Across the pond, housing data came in softer-than-expected, also weighing on the greenback. fell by 11.2% in November, while declined by 0.5% in the same period.
From a technical perspective, the EUR/USD short-term bias remains bullish as the shared currency continues to trade above its main moving averages on the daily chart and above a broken trendline drawn from May 2021 highs.
Still, indicators are losing bullish momentum, which could see the pair entering a consolidation phase. The RSI is flat above its midline, but the MACD has printed a higher red bar.
As for technical levels, the broken trendline at around the 1.0570 zone continues to offer support for the EUR/USD. Loss of this level would pave the way to retesting the 20- and 200-day SMA of 1.0510 and 1.0340, respectively.
On the other hand, resistances are seen at the 1.0660 area, this week’s high, followed by the 1.0700 mark.
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