EUR/USD Finds Support at $1.0680: Should You Buy Now?
The EUR/USD was hovering around the 1.0700 level early Monday due to worldwide market holidays. So, the main currency pair is struggling to make sense of Christine Lagarde’s hawkish comments near the three-week high and to continue the two-day rise. However, ECB Managing Director Christine Lagarde made it clear in an interview with a Croatian newspaper on Saturday that the bloc’s central bank must prevent inflation from being a result of rapid wage growth, according to Reuters.
Following that, comments from Germany’s Finance Minister (FinMin) Christian Lindner appeared to have challenged the EUR/USD bulls, as he expects inflation in Europe’s largest economy to fall to 7% this year and to continue falling in 2024 and beyond, according to Reuters but believes high energy prices will become the new normal.
Remember that the previous day’s negative US data prints and year-end consolidation brought the US Dollar Index (DXY) to a seven-month low. Nonetheless, the December Chicago Purchasing Managers’ Index exceeded the market consensus of 41.2 and the previous reading of 37.2 to show 44.9 values. Nevertheless, the activity gauge indicated a contraction for the fourth month.
EUR/USD Technical Outlook
The EURUSD pair has been trading sideways since yesterday, staying above the 1.0580 level to retain the bullish trend scenario valid for the future period, supported by stochastic movement at oversold zones, with a key goal of 1.0745 in sight. We remind you that a break of 1.0580 will force the price to test the most significant support at 1.0515 before making another positive move.
ABOUT THE AUTHOR
See More
Add 3442
Related Posts
Add 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
Top Broker