EUR / USD rejects 1.1300 test, returns looking at weekly highs above 1.1340 on Christmas Eve

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  • EUR / USD has rebounded from a previous test of the 1.1300 level and is back at 1.1330.
  • The pair is considering a test of weekly highs just above 1.1340, although trading on Friday will be subdued.

It has been a more eventful session than some might have expected on Christmas Eve. Having dipped below 1.1300 levels earlier during US trading hours, the EUR/USD It has now rallied to 1.1330 and is considering a test of weekly highs just above 1.1340. The drop below 1.1300 was likely fueled by the release of a batch of broadly strong US data.

The EUR / USD pair is trading practically flat on the day and conditions are likely to be subdued on Friday given expectations of very low market volumes and the complete lack of major data releases. But currency strategists warn that this week’s dollar weakness, which saw EUR / USD rally above 1.1300 from previous lows below 1.1250, may ultimately prove short-lived. The Fed’s aggressive turn in December has opened the door for a possible rate hike in March, leaving the Fed on track to outperform the ECB on monetary normalization by a significant margin.

This means that the dollar could well resume its gradual bullish march during the first quarter of 2022. That would be bad news for the EUR / USD bulls. Meanwhile, and until the end of 2022, a breakout of the recent ranges of 1.1240-1.1360 for the pair seems unlikely. If the EUR / USD can break past the recent monthly highs (some other G10 / USD pairs have succeeded in recent days), then a test of 1.1400 would be in the cards. But it will be difficult for the pair to hold such rallies, given the above.

Technical levels

EUR/USD

Panorama
Today’s Last Price 1.1331
Today’s Daily Change -0.0007
Today’s Daily Change% -0.06
Today’s Daily Opening 1.1338
Trends
SMA of 20 Daily 1.1294
SMA of 50 Daily 1.1422
SMA of 100 Daily 1.1574
200 SMA Daily 1.1773
Levels
Daily Previous Maximum 1.1342
Daily Previous Minimum 1.1264
Weekly Preview Maximum 1.136
Weekly Prior Minimum 1.1222
Previous Monthly Maximum 1.1616
Minimum Previous Monthly 1.1186
Daily Fibonacci 38.2% 1.1313
Fibonacci Daily 61.8% 1.1294
Daily Pivot Point S1 1.1288
Daily Pivot Point S2 1.1237
Daily Pivot Point S3 1.121
Daily Pivot Point R1 1.1366
Daily Pivot Point R2 1.1393
Daily Pivot Point R3 1.1444

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