FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD pair remains range bound in a lackluster market, with volumes reduced to their minimum in this last week of the year.
Key Quotes:
“After the long Christmas weekend, trading remains subdued in the financial world, and will likely resume only after the release of the US Nonfarm Payroll report early January.
Adding to the lack of volume, there were no relevant macroeconomic releases this Monday, although the US releases its Dallas FED manufacturing index in December, down to -20.1 from -4.9. Despite poor, the reading is hardly considered a market mover, and if fact, there’s little that can awake currencies these days. Nevertheless, the release of the US Consumer Confidence figure for December may trigger some short live spikes.
As for the technical picture, the EUR/USD pair has recovered its previous bullish tone, temporarily interrupted by FED’s announcement of a rate hike earlier this month.
Now trading above 1.0955, the 61.8% retracement of the latest daily decline measured between 1.1059 and 1.0803, the 4 hours chart maintains a mild positive tone, as the price also stands above a mild bullish 20 SMA while the technical indicators stand above their mid-lines, showing no directional momentum at the time being. Selling interest waits on approaches to the 1.1000 level, with a clear break above it leading to a spike up to the 1.1045 region.”
(Market News Provided by FXstreet)