The Pair Steadied On The Sideline Theme And Is Currently Showing Signs Of Recovery.
EUR/USD remained steady on the sideline theme at the beginning of the week, which navigates in the mid-1.0500s ahead of Fed speakers.
The pair is currently seen recovering on Friday amid the labor market figures for the month of December, along with the bidding tone on the buck.
Meanwhile, the EUR has found support with the strengthening EUR/GBP in the wake of sterling’s sharp decline today, citing as a response to heightened Brexit fears.
Based on the most recent data, the speculative net shorts have rallied by about 2-week highs on the week to January 3.
Elsewhere in the EMU’s Investor Confidence tracked by the Sentix index climbed to 18.2 for the current month, while the unemployment rate remained unchanged at 9.8% in the region.
Ahead of the most awaited Atlanta Fed Dennis Lockhart speech and Chicago Fed Charles Evans, the Fed’s Labor Market Conditions Index declined to -0.3 from an earlier reading of 2.1.
EUR/USD Levels to Watch
The pair currently added 0.20% at 1.0554, facing the next barrier at 1.0619 attempting to target 1.0654 en route to 1.0663. Apparently, the immediate support stood at 1.0471, followed by the January low of 1.0387 and last settled at the December low of 1.0350.
NFP Keeps EUR/USD to Target Parity
The EUR/USD exchange rate slightly increased during the course of Monday’s session after the Eurozone data reinforced demand for the shared currency.
The US dollar slightly declined after American markets opened on Monday as market players indulge in selling the dollar from the highs gained from its Friday rally.
However, the EUR/USD exchange rate is likely to continue to trend narrowly on Tuesday as the day will hardly see any publication of influential Eurozone or US ecostats other than the November US wholesale inventory results.
Current Stance of EUR/USD Pair
The chart below illustrates EUR/USD price movement in the wake of the November US wholesale inventory results.
Given a recovering path of the pair, market participants begun selling the currencies as the upcoming inventory results are expected to weigh in on the pair.
Further, the pair is currently showing signs of recovery, which traded in a light trading volume slightly away from resistance 1.06053.
Conclusion
Market participants are recommended to still wait on the sidelines as there aren’t any supporting candles present as of writing.