Daily Price Outlook

In Friday's Asian trading session, the EUR/USD currency pair exhibited a modest upward trend, reaching around 1.1070, marking a 0.04% increase for the day. This change comes after a slight pullback from its recent high of 1.1139. The fluctuations in this major currency pair are largely shaped by the differing monetary policy approaches of the European Central Bank (ECB) and the Federal Reserve (Fed).

Euro Boosted by ECB's Firm Stance

The Euro has gained some traction thanks to the ECB's hawkish outlook. ECB officials have maintained a stance against market expectations of easing monetary policy. Their commitment to making data-driven decisions, independent of external pressures, has bolstered the Euro, contributing to the pair's recent upswing.

Fed's Softening Outlook Influences Market

In contrast, the Fed's more dovish remarks have influenced market sentiments in the opposite direction. Investors are increasingly betting on the US central bank cutting interest rates as early as the coming year. This sentiment is evident in the CME FedWatch Tool, which shows over an 87% likelihood of a rate cut by March, indicating a major shift in expectations.

Mixed US Economic Indicators

The US economic landscape presents a complex picture, with recent data showing mixed signals. Initial Jobless Claims for the week ending December 23 rose to 218,000, surpassing expectations and previous figures. Meanwhile, November's US Pending Home Sales did not meet the anticipated 1.0% increase, staying flat and adding to the mixed economic narrative.

Subdued Market Activity as Year Ends

As 2023 winds down, a quieter market is anticipated for the year's final trading day. Key indicators that investors will watch include Spain’s preliminary Consumer Price Index (CPI) for December and the US Chicago PMI for the same month. These data points could provide crucial insights for currency traders and set the tone for early 2024.

EUR/USD - Technical Analysis

In the realm of foreign exchange markets, the EUR/USD pair presents an intriguing scenario as it stabilizes above a crucial upward channel's support, currently trading around 1.1064. Despite losing 0.39% on Thursday, the pair exhibits resilience on Friday, suggesting a potential shift in momentum.

The EUR/USD pair is operating within a distinct framework of key technical levels. The pivotal point for the pair is set at $1.1060, with immediate resistance lying ahead at $1.1129, followed by further barriers at $1.1174 and $1.1230. These levels mark potential turning points for the currency pair. On the downside, the immediate support is observed at $1.1006, with additional supports at $1.0941 and $1.0891, providing significant thresholds that could influence the pair's movement.

Technical indicators add depth to this analysis. The Relative Strength Index (RSI) stands at 54, indicating a moderately bullish sentiment. This suggests that the pair might have enough momentum to pursue an upward trajectory. Further supporting this bullish outlook is the fact that EUR/USD trades above its 50-Day Exponential Moving Average (EMA) of $1.1011, typically a sign of a short-term bullish trend.

Chart patterns reveal a compelling story. An upward channel is currently in play, indicating a supportive trend for the pair. Additionally, the closing of a tweezer's bottom candlestick pattern above $1.1059 signals potential buying interest. This pattern is often seen as a bullish reversal indicator, suggesting that the pair might be poised for an upward movement.

In conclusion, the overall trend for EUR/USD appears cautiously bullish, particularly if it sustains above the key level of $1.10584. Traders might consider a buy entry above this level, targeting a potential take profit at 1.1141 while maintaining a stop loss at 1.09753. This forecast points towards a potential upward movement in the short term, but as always in the forex market, vigilance and attention to changing market dynamics are key.

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Daily Price Outlook

- EUR/USD finds stability above key support, hinting at potential upward shift.

- Key resistance levels at $1.1129 and $1.1174; support at $1.1006.

- Upward channel and positive technical indicators suggest a bullish outlook.

In the realm of foreign exchange markets, the EUR/USD pair presents an intriguing scenario as it stabilizes above a crucial upward channel's support, currently trading around 1.1064. Despite losing 0.39% on Thursday, the pair exhibits resilience on Friday, suggesting a potential shift in momentum.

The EUR/USD pair is operating within a distinct framework of key technical levels. The pivotal point for the pair is set at $1.1060, with immediate resistance lying ahead at $1.1129, followed by further barriers at $1.1174 and $1.1230. These levels mark potential turning points for the currency pair. On the downside, the immediate support is observed at $1.1006, with additional supports at $1.0941 and $1.0891, providing significant thresholds that could influence the pair's movement.

Technical indicators add depth to this analysis. The Relative Strength Index (RSI) stands at 54, indicating a moderately bullish sentiment. This suggests that the pair might have enough momentum to pursue an upward trajectory. Further supporting this bullish outlook is the fact that EUR/USD trades above its 50-Day Exponential Moving Average (EMA) of $1.1011, typically a sign of a short-term bullish trend.

Chart patterns reveal a compelling story. An upward channel is currently in play, indicating a supportive trend for the pair. Additionally, the closing of a tweezer's bottom candlestick pattern above $1.1059 signals potential buying interest. This pattern is often seen as a bullish reversal indicator, suggesting that the pair might be poised for an upward movement.

In conclusion, the overall trend for EUR/USD appears cautiously bullish, particularly if it sustains above the key level of $1.10584. Traders might consider a buy entry above this level, targeting a potential take profit at 1.1141 while maintaining a stop loss at 1.09753. This forecast points towards a potential upward movement in the short term, but as always in the forex market, vigilance and attention to changing market dynamics are key.

EUR/USD - Trade Ideas

Entry Price – Buy Above 1.10584

Take Profit – 1.1141

Stop Loss – 1.09753

Risk to Reward – 1: 1

Profit & Loss Per Standard Lot = +$831/ -$831

Profit & Loss Per Mini Lot = +$83/ -$83

Daily Price Outlook

The EUR/USD pair failed to stop its downward trend and remained well offered around below the 1.1040 level. However, the reason for its sluggish movement could be attributed to the lack of any major data. Meanwhile, the downward trend was further bolstered by the European Central Bank (ECB) left its benchmark interest rates unchanged at its last meeting of the year. In contrast to this, the bearish US dollar, pressured by the dovish fed stance, was seen as one of the key factor that cap further losses in EUR/USD pair.

Federal Reserve's Inflation Data and Rate Cut Signals: Potential Impact on EUR/USD Pair

It is important to mention that the Federal Reserve's preferred measure of inflation, the Core Personal Consumption Expenditures Price Index (PCE), went up by 3.2% compared to last year, slightly below the expected 3.3%. Looking at the monthly changes, the Core PCE increased by 0.1%, falling short of the expected 0.2%.

At the recent December meeting, the Federal Open Market Committee (FOMC) decided to keep interest rates unchanged and hinted at the possibility of three rate cuts in 2024. This suggests that the Fed is closely monitoring economic conditions and considering adjustments in the coming year.

Therefore, this news of the Federal Reserve maintaining interest rates and indicating potential rate cuts in 2024 could influence the EUR/USD pair by affecting the overall sentiment and dynamics in the currency market.

ECB's Cautious Approach and Optimistic Statements: Potential Support for the Euro and EUR/USD Pair

Furthermore, the European Central Bank (ECB) wrapped up the year by keeping its benchmark interest rates unchanged in the latest meeting. ECB President Christine Lagarde made it clear that the ECB's decisions hinge on data, not influenced by market trends or time pressures.

Adding to this, ECB Vice President Luis de Guindos mentioned that it's too early to consider easing monetary policy. He also expressed confidence that the Eurozone won't experience a technical recession. These more optimistic statements from the ECB could potentially boost the Euro (EUR) and limit the downside for the EUR/USD pair. In simpler terms, the ECB is taking a cautious approach, considering economic data rather than rushing into policy changes, and this stance might support the Euro in the currency market.

Therefore, the ECB's decision to maintain interest rates, coupled with optimistic statements, will likely bolster the Euro (EUR) and mitigate downward pressure on the EUR/USD pair, supporting the Euro in currency markets.

EUR/USD - Technical Analysis 

In the realm of forex trading, the EUR/USD pair remains a critical focus for investors. On December 27, this currency pair exhibits a subtle yet positive change, trading at 1.10447, marking a slight increase of 0.02%. The currency pair's stability is noteworthy, especially considering the current global economic landscape.

The technical analysis of EUR/USD reveals that the pair's pivot point is currently at $1.1044. Investors are closely monitoring resistance levels at $1.1061, $1.1106, and $1.1152. On the support side, key levels are at $1.0981, $1.0937, and $1.0891. These price points are significant for traders as they navigate the forex market's fluctuations.

The Relative Strength Index (RSI) for EUR/USD is at 66, hovering in the bullish sentiment territory without reaching overbought conditions. This suggests a moderately strong buying interest in the market. Furthermore, the pair's price is above the 50-Day Exponential Moving Average (EMA) of $1.0967, reinforcing a short-term bullish trend. This positioning above the EMA is a positive sign for potential upward momentum.

In terms of chart patterns, an upward trendline is supporting the ongoing uptrend in EUR/USD. This pattern indicates a potential continuation of bullish momentum in the short term.

Overall, the trend for EUR/USD appears to be bullish, particularly above the current EMA level. In the short term, it is anticipated that the pair may test its resistance levels. Traders considering entry into the EUR/USD market might contemplate a buy limit at 1.10272, with a take-profit target at 1.10830 and a stop loss at 1.09733.

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Daily Price Outlook

- EUR/USD trades at 1.10447, showing a slight increase of 0.02%.

- RSI at 66 and price above 50 EMA suggest a short-term bullish trend for EUR/USD.

- Upward trendline supports the continued bullish momentum in the pair.

In the realm of forex trading, the EUR/USD pair remains a critical focus for investors. On December 27, this currency pair exhibits a subtle yet positive change, trading at 1.10447, marking a slight increase of 0.02%. The currency pair's stability is noteworthy, especially considering the current global economic landscape.

The technical analysis of EUR/USD reveals that the pair's pivot point is currently at $1.1044. Investors are closely monitoring resistance levels at $1.1061, $1.1106, and $1.1152. On the support side, key levels are at $1.0981, $1.0937, and $1.0891. These price points are significant for traders as they navigate the forex market's fluctuations.

The Relative Strength Index (RSI) for EUR/USD is at 66, hovering in the bullish sentiment territory without reaching overbought conditions. This suggests a moderately strong buying interest in the market. Furthermore, the pair's price is above the 50-Day Exponential Moving Average (EMA) of $1.0967, reinforcing a short-term bullish trend. This positioning above the EMA is a positive sign for potential upward momentum.

In terms of chart patterns, an upward trendline is supporting the ongoing uptrend in EUR/USD. This pattern indicates a potential continuation of bullish momentum in the short term.

Overall, the trend for EUR/USD appears to be bullish, particularly above the current EMA level. In the short term, it is anticipated that the pair may test its resistance levels. Traders considering entry into the EUR/USD market might contemplate a buy limit at 1.10272, with a take-profit target at 1.10830 and a stop loss at 1.09733.

EUR/USD - Trade Idea

Entry Price – Buy Limit 1.10272

Take Profit – 1.10830

Stop Loss – 1.09733

Risk to Reward – 1: 1

Profit & Loss Per Standard Lot = +$558/ -$539

Profit & Loss Per Mini Lot = +$55/ -$53

Daily Price Outlook

The EUR/USD currency pair experienced a consistent upward trajectory, reaching its peak in 18 weeks at 1.1040. However, the reason for its upward trend could be attributed to the bearish US dollar, which was being prssure by the lower-than-expected US inflation figures led investors to anticipate additional rate cuts from the Federal Reserve in 2024.

Impacts of US Economic Indicators on EUR/USD Pair

It's important to highlight that the US Personal Consumption Expenditure (PCE) Price Index, a measure of inflation, didn't meet expectations. The Core Annualized PCE Price Index for the year until November was 3.2%, below the predicted 3.3%, and even lower than October's 3.4%. This has led money markets to expect the Federal Reserve (Fed) to cut interest rates more quickly in 2024.

Investors predict a faster rate of cuts, around 160 basis points, compared to the Fed's projection of 75 basis points by the end of 2024. However, the US Durable Goods Orders beat expectations at 5.4% for November, suggesting the economy might be stronger than anticipated, potentially affecting the extent of future rate cuts.

Therefore, the softer-than-expected US inflation and anticipation of faster rate cuts by the Fed weakened the US Dollar, benefiting the EUR/USD pair. Positive Durable Goods Orders signaled potential economic strength, influencing market sentiment.

ECB's Cautious Stance and Optimism Impacting EUR/USD Dynamics

Moreover, on Thursday, the Vice President of the European Central Bank (ECB), Luis de Guindos, expressed that it's too early to consider easing monetary policy. He assured that the ECB doesn't foresee a technical recession in the Eurozone. De Guindos also mentioned that a fiscal reform deal within the EU would be welcomed as it could reduce market uncertainty.

Meanwhile, ECB Governing Council member Martins Kazaks, on Wednesday, suggested that maintaining current interest rates is necessary for some time. However, he hinted that the first rate cut might happen later than what investors are currently expecting, possibly around mid-2024.

Therefore, the ECB's cautious stance and optimism about avoiding a recession in the Eurozone may strengthen the Euro.

EUR/USD - Technical Analysis 

As Christmas day unfolds, the EUR/USD pair is showing a modest uptick, currently trading at 1.10146, marking a slight increase of 0.02%. This movement comes amidst a complex backdrop of economic uncertainties and shifting market sentiments.

The primary pivot point for the pair is established at $1.0882. Looking ahead, immediate resistance is observed at $1.1020. Should the Euro maintain its upward trajectory, further resistance could be encountered at $1.1143 and $1.1291. On the downside, immediate support lies at $1.0754, with additional safety nets at $1.0606 and $1.0482.

The Relative Strength Index (RSI) stands at 64, indicating a bullish sentiment that is not yet in the overbought territory. This suggests there could be room for further upward movement, although caution is always advised in such volatile markets.

The Moving Average Convergence Divergence (MACD) shows a value of 0.00020 with a signal line at 0.00247. This alignment hints at potential bullish momentum in the near term, suggesting the Euro might continue its upward trend against the Dollar.

Furthermore, an ascending triangle breakout at 1.09901 indicates a buying trend for the EUR/USD pair. This pattern, often associated with bullish momentum, suggests a continuation of the upward trend, provided the pair maintains its stance above this breakout point.

In conclusion, the overall trend for the EUR/USD pair appears to be bullish, especially if it remains above the 1.09901 threshold. In the short term, the pair is likely to test the immediate resistance levels, with a potential to push towards higher resistances depending on the prevailing market conditions and economic data releases.

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Daily Price Outlook

- Bullish Sentiment: The RSI at 64 and the MACD values suggest a bullish outlook for EUR/USD.

- Resistance Levels: Key resistances at $1.1020 and $1.1143 could be tested if the upward trend persists.

- Chart Patterns: The ascending triangle breakout at 1.09901 reinforces the bullish trend, indicating potential for further gains.

As Christmas day unfolds, the EUR/USD pair is showing a modest uptick, currently trading at 1.10146, marking a slight increase of 0.02%. This movement comes amidst a complex backdrop of economic uncertainties and shifting market sentiments.

The primary pivot point for the pair is established at $1.0882. Looking ahead, immediate resistance is observed at $1.1020. Should the Euro maintain its upward trajectory, further resistance could be encountered at $1.1143 and $1.1291. On the downside, immediate support lies at $1.0754, with additional safety nets at $1.0606 and $1.0482.

The Relative Strength Index (RSI) stands at 64, indicating a bullish sentiment that is not yet in the overbought territory. This suggests there could be room for further upward movement, although caution is always advised in such volatile markets.

The Moving Average Convergence Divergence (MACD) shows a value of 0.00020 with a signal line at 0.00247. This alignment hints at potential bullish momentum in the near term, suggesting the Euro might continue its upward trend against the Dollar.

Furthermore, an ascending triangle breakout at 1.09901 indicates a buying trend for the EUR/USD pair. This pattern, often associated with bullish momentum, suggests a continuation of the upward trend, provided the pair maintains its stance above this breakout point.

In conclusion, the overall trend for the EUR/USD pair appears to be bullish, especially if it remains above the 1.09901 threshold. In the short term, the pair is likely to test the immediate resistance levels, with a potential to push towards higher resistances depending on the prevailing market conditions and economic data releases.

EUR/USD - Trade Idea 

Entry Price – Buy Limit 1.09901

Take Profit – 1.10542

Stop Loss – 1.09446

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$641/ -$455

Profit & Loss Per Mini Lot = +$64/ -$45

Daily Price Outlook

- EUR/USD trading slightly down at 1.1002, facing immediate resistance at $1.0885 and $1.1025.

- RSI at 64 suggests bullish sentiment, but MACD indicates limited upward potential.

- Triple top pattern critical; bullish breakout possible above $1.1008, with a cautious short-term outlook.

On December 22, the EUR/USD pair presents a nuanced technical landscape as it trades slightly down by 0.09% at 1.1002. This subtle decline comes amid a complex interplay of economic factors and market sentiments. The pair is currently navigating a crucial juncture, with a pivot point set at $1.0765. On the upside, it encounters immediate resistance at $1.0885, with further barriers at $1.1025 and $1.1151. Conversely, the currency pair finds support at $1.0619, followed by lower levels at $1.0493 and $1.0366, which will be vital in cushioning any downward movement.

The Relative Strength Index (RSI) for EUR/USD stands at 64, suggesting a predominantly bullish market sentiment but still shy of overbought territory. This implies there might be some room left for upward momentum before any potential pullback. In contrast, the Moving Average Convergence Divergence (MACD) is at a modest 0.00017, just above its signal line at 0.00223, indicating that while there is potential for upward momentum, it might be limited.

A key observation in the chart patterns is the presence of a triple top pattern with resistance extending at $1.1006. This pattern usually signifies a critical resistance level, and its breach could pave the way for a bullish breakout. Currently, the EUR/USD pair is trading just above the 50-Day Exponential Moving Average (EMA) of $1.0984, reinforcing a short-term bullish bias. However, the triple top pattern's resistance level is crucial and needs to be closely monitored.

Given these technical indicators, the immediate outlook for EUR/USD is cautiously bullish, especially if it manages to break out above the $1.1008 mark. Such a breakout could lead the pair to test higher resistance levels in the short term. Conversely, failure to breach this critical resistance might see the pair retreating towards its support levels.

EUR/USD - Trade Idea 

Entry Price – Buy Stop 1.10200

Take Profit – 1.10765

Stop Loss – 1.09738

Risk to Reward – 1: 1.22

Profit & Loss Per Standard Lot = +$565/ -$462

Profit & Loss Per Mini Lot = +$56/ -$46

Daily Price Outlook

The EUR/USD currency pair extended its upward rally and remained well bid above the 1.1000 level. However, the upticks were primarily driven by the weaker US Dollar (USD) and the hawkish stance of the European Central Bank, lifting the EUR/USD pair. Investors await November’s US Core Personal Consumption Expenditure Price Index (Core PCE) on Friday, projected to rise 0.2% MoM and 3.3% YoY.

ECB's Cautious Stance Favors Euro Amid Global Uncertainties

It is worth noting that the European Central Bank (ECB) Vice President, Luis de Guindos, mentioned on Thursday that it's too early to consider easing monetary policies. He assured that the ECB doesn't anticipate a technical recession in the Eurozone and expressed a positive stance on an EU fiscal reform deal, believing it would ease market uncertainties.

On a similar note, Martins Kazaks, a member of the ECB Governing Council, stated that maintaining current interest rates is necessary for a while. However, he suggested that the first rate cut might happen later than what investors are currently expecting, possibly not until around mid-2024.

Therefore, this news suggests a cautious approach by the ECB, supporting the Euro against the US Dollar.

Fed's Cautious Stance and Weaker US GDP Propel EUR/USD Pair

Moreover, the Federal Reserve (Fed) has taken a more cautious approach, hinting at possible 75 basis points (bps) in rate cuts in the latter part of 2024. On the economic front, the US Bureau of Economic Analysis (BEA) reported on Thursday that the country's Gross Domestic Product (GDP) in Q3 expanded by 4.9%, slightly below the market's 5.2% expectation.

Hence, this less-than-stellar US data, coupled with the Fed's expectation of three rate cuts, puts downward pressure on the US Dollar. This, in turn, provides support for the Euro against the Dollar (USD), benefiting the EUR/USD currency pair.

EUR/USD - Technical Analysis

On December 22, the EUR/USD pair presents a nuanced technical landscape as it trades slightly down by 0.09% at 1.1002. This subtle decline comes amid a complex interplay of economic factors and market sentiments. The pair is currently navigating a crucial juncture, with a pivot point set at $1.0765. On the upside, it encounters immediate resistance at $1.0885, with further barriers at $1.1025 and $1.1151. Conversely, the currency pair finds support at $1.0619, followed by lower levels at $1.0493 and $1.0366, which will be vital in cushioning any downward movement.

The Relative Strength Index (RSI) for EUR/USD stands at 64, suggesting a predominantly bullish market sentiment but still shy of overbought territory. This implies there might be some room left for upward momentum before any potential pullback. In contrast, the Moving Average Convergence Divergence (MACD) is at a modest 0.00017, just above its signal line at 0.00223, indicating that while there is potential for upward momentum, it might be limited.

A key observation in the chart patterns is the presence of a triple top pattern with resistance extending at $1.1006. This pattern usually signifies a critical resistance level, and its breach could pave the way for a bullish breakout. Currently, the EUR/USD pair is trading just above the 50-Day Exponential Moving Average (EMA) of $1.0984, reinforcing a short-term bullish bias. However, the triple top pattern's resistance level is crucial and needs to be closely monitored.

Given these technical indicators, the immediate outlook for EUR/USD is cautiously bullish, especially if it manages to break out above the $1.1008 mark. Such a breakout could lead the pair to test higher resistance levels in the short term. Conversely, failure to breach this critical resistance might see the pair retreating towards its support levels.

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Daily Price Outlook

- S&P 500 climbs to 4,746.76, facing resistance at $4,685 and $4,772, indicating a potential upward trend.

- RSI at 65 suggests bullish sentiment, but MACD at -2.87 signals possible bearish pressure.

- Bearish engulfing pattern below $4,750 hints at a potential downtrend, with a cautious outlook below $4,775.

On December 22, the S&P 500 Index exhibited a notable surge, rising by 1.03% to 4,746.76. This upward trajectory indicates a renewed vigor in the market, as the index surpasses its pivot point at $4,632. Looking ahead, the S&P 500 faces immediate resistance at $4,685, followed by further barriers at $4,772 and $4,826. On the downside, support levels are established at $4,545, $4,489, and $4,435, which will be crucial in the event of any retracement.

The technical indicators paint a complex picture for the S&P 500. The Relative Strength Index (RSI) stands at 65, hovering near the upper threshold of bullish sentiment but not yet indicating overbought conditions. This suggests that there is still some room for upward movement. However, the Moving Average Convergence Divergence (MACD) presents a contrasting scenario with a value of -2.87 against a signal of 45.17, hinting at potential bearish pressure.

Furthermore, the index's price action remains above the 50-Day Exponential Moving Average (EMA) of $4,731, typically a sign of a bullish short-term trend. Despite this, a bearish engulfing pattern observed on the daily timeframe, particularly below the $4,750 level, suggests a potential downtrend in the S&P 500.

Given these mixed signals, the overall outlook for the S&P 500 appears cautiously bearish, especially if it remains below the critical $4,775 level. In the short term, investors and traders should anticipate the index testing its immediate resistance levels. A successful breach of these could indicate a shift towards bullish momentum. Conversely, failure to overcome these levels might lead to a pullback towards lower support zones.

S&P500 (SPX) - Trade Idea 

Entry Price – Sell Below 4752

Take Profit – 4670

Stop Loss – 4810

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$820/ -$580

Profit & Loss Per Mini Lot = +$82/ -$58 (edited)

Daily Price Outlook

Despite the bearish bias of the US dollar, the EUR/USD currency pair was unable to break its previous-day losing streak. It experienced mild losses and continues to be held below the 1.1000 mark during the early European trading hours on Wednesday. However, the downward trend can be attributed to the downbeat Eurozone data. The Eurozone Harmonized Index of Consumer Prices (HICP) for November reported a -0.6% month-on-month (MoM) figure, compared to the previous -0.5%. This result was weaker than expected, raising concerns about economic health and potentially hindering the Euro's performance.

Eurozone Inflation Dynamics and ECB Meeting Highlights

It is worth noting that Eurozone inflation in November fell short of market expectations, primarily attributed to a decline in energy prices. The Harmonized Index of Consumer Prices (HICP) for November recorded a month-on-month decrease of -0.6%, slightly weaker than anticipated. The annual inflation rate stood at 2.4%, in line with analysts' predictions. However, examining core inflation (excluding food and energy prices), it registered at 3.6% year-on-year, marking the lowest figure since April 2022.

It should be noted that the European Central Bank (ECB) recently conducted a meeting and made it clear that they did not discuss the possibility of cutting interest rates. However, they did issue a caution regarding a potential spike in December inflation due to colder weather, which typically leads to increased energy demand and prices. This situation could constrain the strength of the Euro and present a challenge for the EUR/USD pair.

US Housing Data and Upcoming Economic Indicators in Europe and the US

Moreover, Building Permits in the US declined to 1.46 million in November, falling short of the expected 1.47 million, while Housing Starts rose to 1.56 million, surpassing the consensus of 1.36 million. The mixed US housing data with a decline in Building Permits and a rise in Housing Starts could influence the EUR/USD pair, potentially contributing to market volatility.

Looking forward, the focus in the market will be on several key economic indicators. In Germany, investors will be watching the Producer Price Index (PPI) for November. For the Eurozone, attention turns to October's Current Account and Construction Output. Additionally, investors will keep their eye on December's Consumer Confidence for the Eurozone. On the U.S. side, there will be the release of Existing Home Sales data.

EUR/USD - Technical Analysis

As of December 20, the EUR/USD pair is navigating a delicate balance in the forex market. Currently priced at 1.0969, it shows a modest decline of 0.1%. The pair finds itself fluctuating around significant technical levels, with a pivot point established at 1.0754. Resistance levels are observed at 1.0879, 1.1021, and 1.1146, while support is anchored at 1.0611, 1.0487, and 1.0362.

The technical indicators paint a mixed picture. The Relative Strength Index (RSI) at 65 leans towards a bullish sentiment but stops short of the overbought threshold, indicating potential room for growth. However, the Moving Average Convergence Divergence (MACD) shows a near-zero value of 0.00006 against a signal of 0.00263, suggesting a lack of strong momentum in either direction.

The 50-Day Exponential Moving Average (EMA) at 1.0957 slightly underpins the current price, reinforcing a short-term bullish trend. Nevertheless, a bearish engulfing candle pattern near 1.09770 signals potential bearish bias, indicating that the pair is likely to stay bearish below 1.1005.

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