EUR / USD Current Price: 1.1858
- The world reported 11,752 new coronavirus deaths on Friday, the deadliest day on record.
- Markit will publish the preliminary November PMIs for the EU and US.
- EUR / USD is neutral to bullish above 1.1800 but lacks directional momentum.
EUR / USD ended a fourth straight day without much change around the 1.1850 level, ending the week with modest gains but at familiar levels. Financial markets turned sluggish last week, trapped between resurgent coronavirus cases and vaccination hopes. Several pioneering companies developing vaccines to prevent COVID-19 have reported the first results of their third-stage test, providing encouraging results. Yet at the same time, the world reported 11,752 new coronavirus deaths on Friday, making it the deadliest day since the start of the pandemic. Such numbers translate into various restrictive measures which could result in an economic recovery that is still slower to be seen and a more marked slowdown before the return.
Macroeconomic data reflects the situation. On Monday, Markit will release new indices on economic health, November’s preliminary estimates of its PMIs for the EU and US. Manufacturing activity and services output would contract from October levels in Europe, while the United States would remain stable in the expansion territory.
Short-term technical outlook EUR / USD
EUR / USD has held above the 1.1800 level throughout the week, keeping the risk biased upward, despite the lack of momentum. In the daily chart, the pair remains above all of its moving averages, with a bullish 100 DMA approaching a flat 20 DMA, reflecting the long-term prevalence of bulls. Technical indicators are on positive ground, lacking directional strength. The 4-hour chart offers a neutral position, as the pair hovers around a flat 20 SMA, while technical indicators hover around their midlines.
Support levels: 1.1810 1.1770 1.1720
Resistance levels: 1.1885 1.1920 1.1965
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