EUR/USD Current price: 1.1387
- EU December inflation confirmed at 1.6% YoY, US data surprised to the upside.
- US indexes fight back in a risk-averse environment, trimming part of their pre-opening loses.
The EUR/USD pair fell to a daily low of 1.1370 as sentiment deteriorated overnight, on reports indicating Chinese economic growth would likely decelerate in this 2019. Also hurting market’s sentiment is the political situation of the UK, as, despite PM May survived the no-confidence vote, there are no certainties over what’s next in the Brexit front. The EU released the final versions of December inflation, confirmed at 1.6% YoY, below November’s reading of 1.9%, exacerbating speculation that the ECB will have to delay its first rate hike in the post-QE era to 2020.
The US just released some minor figures that anyway gave a boost to the greenback, as weekly unemployment claims were of 213K in the week ended January 11, while the Philly Fed Manufacturing Survey jumped to 17.0 in January, almost doubling December reading of 9.1. The sour tone of Asian and European equities dragged Wall Street lower ahead of the opening, although the three major indexes are bouncing from intraday lows, battling against the dominant negative mood.
The EUR/USD pair continues struggling around the 61.8% retracement of its latest bullish run, although the lower lows daily basis skew the risk to the downside. In the 4 hours chart, the pair is unable to advance beyond a directionless 200 SMA, while the shorter ones stand above this last, also suggesting the pair is under bears’ control. Technical indicators in the mentioned chart, offer neutral-to-bearish slopes well into negative ground, reaffirming the downward bias.
Support levels: 1.1360 1.1320 1.1285
Resistance levels: 1.1425 1.1450 1.1480