- The EUR/USD pair fell 0.2% on Tuesday due to investor bids.
- Markets shrugged off a slight decline in unemployment in the Eurozone.
- The rest of the week features little data for the Euro, as investors await US CPI inflation.
The EUR/USD pair retreated on Tuesday and returned to known short-term lows, while broader markets moved away from the Euro (EUR) and rose 0.2% against the US Dollar (USD).
The Eurozone unemployment rate fell slightly on Tuesday, from 6.5% to 6.4% in November. With the European economy grappling with productivity difficulties, a slight decline in the overall unemployment rate did little to galvanize Euro bulls, and EUR/USD spent most of Tuesday retreating in a one-sided move.
In the middle of the week, the economic calendar looks very thin, so investors will be attentive to Thursday's US Consumer Price Index (CPI) inflation figures, for which markets are predicting a slight rebound in annualized general CPI inflation for December from 3.1% to 3.2%. The MoM CPI is also expected to rise from 0.1% to 0.2%.
Investors are looking for signs that the Federal Reserve (Fed) will be pushed into the next cycle of rate cuts sooner rather than later. Last Friday, Non-Farm Payrolls (NFP) outperformed markets' bets on a Fed rate cut as soon as March, and market risk sentiment will await a miss in US inflation numbers. . Thursday.
EUR/USD Technical Outlook
The EUR/USD pair remains stuck in a short-term congestion pattern for early 2024 intraday, stuck below a 200 hourly moving average (SMA) that turns bearish just below the 1.1000 zone. The pair has been stuck within a rough range between 1.0980 and 1.0900, and short-term pressures are tilted to the downside.
Daily candles have the EUR/USD caught in a dip just north of a bullish crossover of the 50- and 200-day SMAs near 1.0850. The pair is down almost 2% from December's high at 1.1140, but is still up more than 4.5% from last October's low near 1.04485.
EUR/USD Hourly Chart
EUR/USD Daily Chart
EUR/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
