FXStreet (Córdoba) – EUR/USD plummeted at the beginning of the New York session, with no clear catalysts behind the move and thin trading volume playing its role.
EUR/USD dropped more than 60 pips in the blink of an eye as the US dollar rallied versus European peers. However, the euro managed to hold up above the 1.0900 and trimmed losses afterwards. Having bottomed out at 1.0908, EUR/USD is currently trading at 1.0935, still 0.27% below its opening price, as the dollar continues to shrug off mixed economic data.
On the data front, US goods trade deficit widened to $60.5 billion in November, while S&P/Case Shiller home price index rose 5.54% YoY in October versus 5.4% expected. December consumer confidence index rose to 96.5, beating expectations of 93.8 and up from 92.6 in November (revised from 90.4).
Despite intraday volatility exacerbated by low volume, EUR/USD continues to trade within familiar ranges, consolidating between 1.09-1.10 after the Fed raised rates and focus turns to the path of future increases.
EUR/USD levels to consider
In terms of technical levels, next supports are seen at 1.0909 (intraday low), 1.0860 (50-day SMA), 1.0795 (Dec 7 low) and 1.0700 (psychological level). On the flip side, next resistances could be found at 1.0990/93 (Dec 28 & 29 highs), 1.1010 (Dec 10 high), 1.1055 (100-day SMA/50-week SMA) and 1.1095 (Oct 28 high).
(Market News Provided by FXstreet)