EUR/USD value reached above 1.0900 indicating an upward trend as per the Relative Strength Index (RSI). However, the gains still face challenges due to the high US Dollar Index and weak Eurozone data which dropped to 47.0.
In Asian trading, the EUR/USD pair is holding above 1.0900, marking a rebound from recent losses. Technical indicators paint a positive picture, with an intent to revisit resistance levels at 1.1000 and the recent peak at 1.1017. However, a potential dip below 1.0900 could see the pair testing support at 1.0884 and 1.0881.
The 14-day Relative Strength Index (RSI) is positioned above 50, indicating an upward trend, while the Moving Average Convergence Divergence (MACD) aligns with this, signalling the potential for upward movement. Traders are closely monitoring the pivotal level at 1.1050 for a potential breakout.
Despite the EUR/USD holding above 1.0900, modest gains face challenges from a robust US Dollar Index (DXY) and weak Eurozone data. The Eurozone HCOB Composite PMI dropped to 47.0 in December, signalling contraction for seven consecutive months. In contrast, the US S&P Global Composite PMI showed growth, reaching 51.0.
Investors are eagerly anticipating Monday’s German IFO surveys for additional insights. The mixed economic signals from both the Eurozone and the US contribute to the uncertainty surrounding the EUR/USD pair’s trajectory amid ongoing global economic challenges. Traders remain vigilant for cues that could dictate the pair’s direction in the coming sessions.
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