Home Forex News EUR/USD remains hesitant ahead of key obstacle, ING fears a drop to 1.02 tomorrow

EUR/USD remains hesitant ahead of key obstacle, ING fears a drop to 1.02 tomorrow


EUR/USD remains hesitant ahead of key obstacle, ING fears a drop to 1.02 tomorrow By Investing.com

Breaking News


Forex 4 minutes ago (Nov 29, 2022 03:33AM ET)

(C) Reuters.

Investing.com – The EUR/USD pair displayed high volatility yesterday, climbing to a high of 1.0497, the highest since June 29, before correcting to a low of 1.0331 last night and finally settling at 1.0360 this morning (at the time of writing).

News was particularly heavy for the Euro/Dollar during the day yesterday, with protests in China initially causing a wave of risk aversion that led to a lower opening on Sunday evening.

Monday morning then saw a strong rebound, driven by a generalized decline in the dollar that did not appear to be driven by any particular headline. Some analysts pointed to the hope that the unrest in China would finally lead to an anticipated easing of the country’s zero-COVID policy as the reason for the improved sentiment.

However, sellers then responded as the EUR/USD approached the key 1.05 level, sending the currency pair lower.

A few speeches from central bankers, including Christine Lagarde, the ECB President, and James Bullard, St. Louis Fed President enlivened the afternoon, but without much influence.

EUR/USD remains hesitant against its 200-day moving average

From a charting perspective, yesterday was mostly marked by a further failure of the EUR/USD to hold above its 200-day moving average, as seen on the chart below.

This indicator has been closely followed by many traders since November 15, when the EUR/USD price tested it for the first time since June 2021. Since then, the Euro/Dollar has made multiple attempts, most recently yesterday morning, to climb above this indicator. But each time, the attempt ended in failure.

However, this repeated inability to stay above the 200-day MA could lead to a more or less extensive correction of the Euro, according to analysts. In this context, the first potential supports to be considered on Tuesday are located on the psychological threshold of 1.03, then the low of November 21 at 1.0223.

ING expects a bearish end to the week for the Euro/Dollar in the face of a busy calendar

That’s especially the view of ING analysts, who wrote last night that “the second half of the week could potentially push EUR/USD back toward the 1.02 area,” noting that tomorrow’s expected Eurozone inflation data could be key.

“The question is whether inflation will fall back from the highs reached (not far from 11% year-on-year) and allow the European Central Bank to ease its hawkish rhetoric a bit,” the bank noted in this regard.

Looking ahead to today, EUR/USD traders will be keeping an eye on Preliminary CPI for Germany for November’s European statistics at 2pm. Across the Atlantic, the main economic release that could potentially influence the EUR/USD will be the Conference Board US consumer confidence index at 4pm.

>> Find all the important statistics for the Euro Dollar today in our economic calendar.

EUR/USD remains hesitant ahead of key obstacle, ING fears a drop to 1.02 tomorrow

Related Articles

Dollar weakens, yuan rises; China’s COVID controls in focusBy Investing.com – Nov 29, 2022

By Peter Nurse
Investing.com – The U.S. dollar weakened in early European trade Tuesday and the Chinese yuan gained on hopes the Chinese government was set to ease its tight…

Asia FX shrugs off hawkish Fedspeak, China in focusBy Investing.com – Nov 28, 2022

By Ambar Warrick
Investing.com– Most Asian currencies recovered sharply from recent losses on Tuesday despite hawkish signals from the Federal Reserve, with focus remaining…

Yuan gains on hopes of COVID policy easing; dollar slidesBy Reuters – Nov 28, 2022

By Harish Sridharan (Reuters) – The yuan jumped on Tuesday ahead of a COVID-19 press briefing in China later in the day that is spurring hopes of a potential easing in the…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News