EUR/USD Loses Steam Amid Risk-Off Flows
2022.11.18 02:51
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The pair retreated modestly on Thursday as the U.S. dollar recovered some ground amid risk aversion triggered by geopolitical tensions between Russia and NATO after missiles landed on Poland on Tuesday.
At the time of writing, the EUR/USD pair is trading at the 1.0360 area, 0.25% below its opening price. The pair hit an intraday low of 1.0305 but bounced alongside a late recovery in Wall Street.
In the U.S., housing data was overall positive even though mortgage rates are increasing due to tighter financial conditions. decelerated slower than expected in October, while came in at 1.425M, in line with expectations but 4.23% lower than the previous month.
Separated data showed that the number of people filing first-time claims for state unemployment insurance increased below expectations in the week that ended on Nov. 11. came in at 222K versus the 225K expected.
Earlier in the session, the Eurozone’s rate, measured by the Consumer Price Index, was revised to 10.6% YoY in October, slightly below the preliminary estimate of 10.7%, but had little impact on the shared currency.
The EUR/USD pair’s short-term bias remains positive from a technical perspective, with the 20-day SMA crossing above the 100-day SMA. Still, indicators have lost upward momentum on the daily chart as the pair seems to have entered a consolidation phase.
Immediate support levels could be found at the 1.0300 and 1.0200 areas, ahead of the mentioned SMAs cross at around 1.0030. On the other hand, resistances could be found at the 1.0400 zone, followed by the 200-day SMA at 1.0410. A break above the latter could trigger a rally targeting 1.0500.
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