Market participants are likely to closely monitor the downside potential of the euro, which is facing resistance on the upside
21.12.2022
- U.S. Existing Home Sales
- U.S. Weekly Crude Oil Inventories
In the previous day's U.S. currency trading, the EUR/USD rose slightly as the Dollar Index fell to 104.1.EUR/USD rose from 1.0577 to 1.0658, rebounding as it found support at the 200-period simple moving average (SMA) on the hourly chart. However, on the 4-hour chart, a range-bound market centered around the 20-period moving average (MA) continues, and the pair still lacks a clear direction. Since it has not fallen below the 10-period MA on the daily chart, we will closely monitor whether this represents a mid-range consolidation within an ongoing uptrend.
European currencies fell as the euro dropped against the pound following the release of Germany’s November Producer Price Index (PPI), which came in at -3.9%, worse than the market forecast of -1.8%. The EUR/GBP pair fell from 0.8771 to 0.8714. The decline halted as the 4-hour 20-period moving average (MA) provided support.Technically, a divergence has emerged on the 4-hour RSI for EUR/GBP, so traders should be cautious of a decline following a break below the 4-hour 20-period moving average.
Today’s schedule includes the German GfK Consumer Confidence Survey at 4:00 p.m. CET, the UK CBI Retail Trade Survey at 8:00 p.m. CET, and the U.S. MBA Mortgage Applications Index at 9:00 p.m. CET, followed by the Canadian Consumer Price Index and the U.S. Third-Quarter Current Account Balance at 10:30 p.m. EST,at 12:00 AM, the U.S. Consumer Confidence Index and Existing Home Sales; at 12:30 AM, U.S. Weekly Crude Oil Inventories; and at 3:00 AM, the U.S. 20-Year Treasury Auction. We will be closely monitoring the downside potential of the euro, which is facing resistance on the upside.
Author: Keisuke Sakurai
