The single currency of the European Union region fluctuated in a narrowly bearish range during the US session to see it return to the third session in five sessions from its highest since November 7 against the US dollar following developments and economic data followed Monday by the Eurozone economies. European Central Bank (ECB) Governor Mario Draghi's testimony came before the European Parliament's Economic and Monetary Affairs Committee and amid a lack of economic data from the US economy earlier this week.
At 5:13 am GMT, the EURUSD rose 0.1% to 1.1336, compared to the opening levels of 1.125 after the pair hit a 16-month low of 1.1324.
We followed the German economy, the euro zone's largest economy, to reveal the reading of the IFO Business Climate Index, which showed a narrowing to 102.0 versus 102.9 in October, worse than expected at 102.3, before the ECB Governor Mario Draghi In Brussels, during which he confirmed his vision of the importance of ending the cash availability program in the coming month of December.
Draghi said there is still enough basis to support the ECB's monetary policymakers' confidence that inflationary pressures will gradually rise to the target during the volatile period and that higher wages will support further inflation spikes, adding that market expectations for long-term inflation are stable and still consistent with ECB forecast, adding that the economy still needs some degree of monetary stimulus.
This came just hours after European Council President Donald Tusk announced that the EU's 27 members had ratified the UK exit agreement regularly and the final declaration on the future relationship between the EU and the UK. In the same vein, German Finance Minister Olaf Schulz said his country was prepared for both scenarios, a systematic and unregulated exit of Britain from the European Union.
Technical Analysis:
The EUR/USD pair resumed its negative trading today, approaching the 1.1300 level again. The bearish trend remains on the short and short term, relying on stability below 1.1443, with a reminder that breaking the target will push the price towards 1.1181 as the next major station.
The Euro is trading below the moving averages that are pushing the price lower. While the Stochastic is floating in the oversold area in a bearish move signal
Support and resistance:
Support: 1.1294-1.1216-1.1180
Resistance: 1.1341-1.1386-1.1443
General Trend: Down
Author: Maher Maarouf