FXStreet (Mumbai) – The bearish momentum on the EUR/USD pair remains intact entering a brand new week, with the bulls facing headwinds from the looming ECB Dec 3 meeting.
EUR/USD eyes Friday’s low
Currently, the EUR/USD pair trades -0.13% lower at 1.0579, having faced rejection just below hourly 20-SMA at 1.0593. As the divergent monetary policy outlooks between the Fed and the ECB gets more pronounced in the run up to the ECB Dec 3 showdown, the bearish grip on the EUR/USD pair is likely to tighten further.
Last week saw Reuters reporting the ECB is likely to roll-out unconventional monetary policy measures, other than the QE expansion/deposit rates cut, at its upcoming meeting in a bid to combat deflation and revive economic growth.
While the recent streak of upbeat US fundamental continue to boosts the odds of a Dec Fed rate hike ahead of another payrolls report this week, which will confirm Fed’s interest rates outlook.
As the US traders return from the Thanksgiving weekend, volatility is expected to pick-up along with the economic news as we progress into a data-heavy week ahead.
EUR/USD Technical Levels
The pair wavers above 1.06 handle, with the immediate support seen at 1.0567 (Nov 27 Low). Selling pressure will intensify below the last, dragging the pair towards 1.0519 (April Low). While to the upside the next hurdle in sight is located at 1.0599 (5-DMA) and from there to 1.0621/29 (1h 100-SMA/ 10-DMA).
(Market News Provided by FXstreet)