EUR/USD: Navigating Bearish Waters Amidst Data Releases and...

EUR/USD: Navigating Bearish Waters Amidst Data Releases and Central Bank Meetings

EUR/USD witnessed a second consecutive week of losses, maintaining a prevailing bearish bias in its technical outlook. Despite this, investors may exercise caution in anticipating an extended rally of the US Dollar (USD) as they await crucial macroeconomic data releases and central bank meetings scheduled for the week.

The pair's price trajectory continues within a bearish trend, encountering dynamic resistance that has prompted two notable bounces. Presently, there is a likelihood of another rebound around the 61.8% Fibonacci level, signaling a potential extension of the existing downtrend.

The November US jobs report played a pivotal role in bolstering the USD just ahead of the weekend. Nonfarm Payrolls surpassed market expectations by rising to 199,000, compared to the anticipated 180,000, while the Unemployment Rate edged lower to 3.7% from 3.9%. This positive economic data spurred a nearly 2% increase in the benchmark 10-year US Treasury bond yield, propelling the USD Index above the 104.00 mark.

As we assess the technical landscape, we are inclined to anticipate a bearish new impulse, with the resistance at 1.08200 remaining steadfast. Investors will keenly observe whether this level holds, potentially setting the tone for the pair's future trajectory.


Our preference

Short positions below 1.08200 with targets at 1.0740 & 1.0720 in extension.