EUR/USD is trading under pressure below 1.1300, fading the corrective pullback from the weekly low. Treasury yields stay firmer amid the market’s optimism surrounding the new Omicron covid variant. The mixed German ZEW Survey adds to the weight on the euro. The EUR/USD pair trades at fresh weekly lows in the 1.1230 price zone, as the greenback firmly advances against its European rivals, as yields pressure their weekly highs while global stocks maintain their positive momentum. Commodity-linked currencies, on the other hand, are firmly up against the dollar, following the lead of equities while also supported by soaring oil prices.Meanwhile, the US published the October Trade Balance, which posted a deficit of $83.2 billion. Also, Q3 Nonfarm Productivity resulted at -5.2%, while Unit Labor Costs for the same period improved to 9.6%.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From a technical point of view, the EUR/USD pair is poised to accelerate its slump. The daily chart shows that sellers rejected advances near a firmly bearish 20 SMA for a sixth consecutive day, while, in the mentioned time frame, technical indicators resumed their declines within negative levels.

In the near term, and according to the 4-hour chart, the bearish case is even clearer, as technical indicators head south almost vertically below their midlines, reflecting strong selling interest. Additionally, the 20 and 100 SMAs maintain their bearish slopes, converging at around 1.1300. The pair is poised to test the 1.1200 level, while a break below it exposes the 1.1160 price zone, where the pair bottomed on June 2020.

EURUSD Eyes 1.1180 Support

Dec 07 2021

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