EUR/USD Appears To Be On The Rise, Advancing To Daily Highs Around 1.1340
The Euro regained some of its strength on Thursday, lifting the EUR/USD pair to the 1.1330/40 range amid a moderate offered tilt in the greenback.
The EUR/USD started to pick up some speed and put behind Wednesday’s bearish price movements, consistently holding above the 1.1300 resistance level and against the theme of increased caution in the world markets in reaction to Omicron’s fears.
As there is still a great deal of ambiguity about the omicron modified version, its resilience to current vaccines, and its effect on the international economic outlook.
An increasing number of countries are already starting to plan to re-impose lockdown initiatives and limitations, which may have an impact on the market in the long run.
From the Dollar’s perspective, investors seem to have already absorbed Powell’s hawkish statement on Wednesday, as US rates have reversed their recent decline and are back in the green.
According to the domestic calendars, the unemployment rate in the Euro area fell to 7.3% in October from 7.4%. Challenger Job Cuts, which will be followed by the customary weekly claims, will be broadcast in the United Kingdom.
What To Look Out For In The EUR/USD
The EUR/USD has done a commendable job of maintaining its trading above the 1.1300 mark despite an unstable start to the week.
The latest rise up in spot was bolstered by the Greenback’s corrective decline, which is only expected to last for a short period.
Fresh coronavirus worries spurred by the discovery of the new coronavirus variation omicron last week are likely to keep the desire for safe havens on the rise, at least for the foreseeable future.
And meanwhile, the outlook for the Euro currency continues to remain bearish, owing to the divergence in monetary policy between the European Central Bank and the Federal Reserve.
An increase in COVID-19 cases in Europe, as well as a possible pullback in the improving economy in the Euro area, is evidenced by some weakness noted in crucial key indicators.
The following are the most important happenings in the Euro region this week: The Unemployment Rate in the European Union (Thursday)–EMU/Germany Services provided at the end of the process, PMIs, and Christine Lagarde, the head of the European Central Bank (Friday).
The following are the most pressing concerns on the back burner: In the aftermath of the epidemic, there has been an asymmetrical economic boom in the region. There is an increasing possibility that high inflation will continue for a longer period.
In light of the growing tension between the EU, Poland, and Hungary over the legal system, there has been a resurgence in political activity surrounding the EU Recovery Fund. Speculations on the European Central Bank’s tapering.
EUR/USD Metrics To Keep An Eye On
EUR/USD CHART Source: Tradingview.com
The spot is currently up 0.16% at 1.1337, and it faces a series of uphill challenges, beginning with 1.1382 (weekly strong November 30), followed by 1.1464 (weekly high November 15), and finally 1.1527 (55-day SMA).
The other extreme is a break below 1.1186 (the 2021 low on Nov.24), which would attempt 1.1185 (the monthly low on July 1, 2020) and eventually reach 1.1168 (low on June 19, 2020).