EUR/USD: Navigating Challenges and Anticipating Bullish Momentum in 2024
EUR/USD encountered a week of fluctuating fortunes, managing to recover from daily losses after briefly slipping below the critical support level of 1.0875 on Friday. Despite closing the first week of 2024 in negative territory, the pair's near-term technical outlook presents an intriguing puzzle for investors. With a lack of high-tier macroeconomic data releases, attention shifts to risk perception and market sentiment as key drivers in the coming weeks.
Technical Analysis and Accumulation Range:
The current price dynamics align with our earlier technical analysis, placing EUR/USD in an accumulation range just above the 200 moving average. However, a broader view, especially in the H4 timeframe, reveals a bullish trend within the 50% and 61.8% Fibonacci area. This higher timeframe perspective sets the stage for potential bullish impulses, aiming to establish new higher highs.
Mixed US Macroeconomic Data:
The US experienced mixed macroeconomic data releases, contributing to wild fluctuations in EUR/USD during the American session on Friday. Nonfarm Payrolls for December surpassed market expectations, rising by 216,000. Despite this positive figure, downward revisions to November and October prints curtailed the USD rally. The Unemployment Rate held steady at 3.7%, but concerns emerged as the Labor Force Participation Rate declined to 62.5% in December from 62.8%. Furthermore, the ISM Services PMI declined to 50.6 from 52.7 in November, signaling a loss of momentum in the service sector's business growth.
Anticipating Bullish Continuation:
In light of the technical setup and mixed macroeconomic signals, our outlook for EUR/USD leans towards a bullish continuation. The accumulation range and the bullish trend within the Fibonacci area provide a foundation for potential upward movements. As market participants navigate evolving global dynamics and economic indicators, the anticipation of a bullish resurgence in EUR/USD becomes a focal point for traders eyeing strategic opportunities in the currency market.
Our preference
Long positions above 1.0770 with targets at 1.1140 & 1.1200 in extension.
EUR/USD encountered a week of fluctuating fortunes, managing to recover from daily losses after briefly slipping below the critical support level of 1.0875 on Friday. Despite closing the first week of 2024 in negative territory, the pair's near-term technical outlook presents an intriguing puzzle for investors. With a lack of high-tier macroeconomic data releases, attention shifts to risk perception and market sentiment as key drivers in the coming weeks.
Technical Analysis and Accumulation Range:
The current price dynamics align with our earlier technical analysis, placing EUR/USD in an accumulation range just above the 200 moving average. However, a broader view, especially in the H4 timeframe, reveals a bullish trend within the 50% and 61.8% Fibonacci area. This higher timeframe perspective sets the stage for potential bullish impulses, aiming to establish new higher highs.
Mixed US Macroeconomic Data:
The US experienced mixed macroeconomic data releases, contributing to wild fluctuations in EUR/USD during the American session on Friday. Nonfarm Payrolls for December surpassed market expectations, rising by 216,000. Despite this positive figure, downward revisions to November and October prints curtailed the USD rally. The Unemployment Rate held steady at 3.7%, but concerns emerged as the Labor Force Participation Rate declined to 62.5% in December from 62.8%. Furthermore, the ISM Services PMI declined to 50.6 from 52.7 in November, signaling a loss of momentum in the service sector's business growth.
Anticipating Bullish Continuation:
In light of the technical setup and mixed macroeconomic signals, our outlook for EUR/USD leans towards a bullish continuation. The accumulation range and the bullish trend within the Fibonacci area provide a foundation for potential upward movements. As market participants navigate evolving global dynamics and economic indicators, the anticipation of a bullish resurgence in EUR/USD becomes a focal point for traders eyeing strategic opportunities in the currency market.
Our preference
Long positions above 1.0770 with targets at 1.1140 & 1.1200 in extension.
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