EUR/USD continuing to spiral around 1.1450 heading into 2019
- Wednesday brings Markit PMIs to open the Fiber's new year.
- With early January volumes still constrained, market action remains a little wonky.
- Friday brings 2019's first US NFP figures, which could see Greenback traders on the sidelines until then.
EUR/USD heads into 2019's first European market session struggling to hold onto 1.1450 as Wednesday sees the US Dollar take a leg up, with broader market sentiment twisting towards the downside, though thin market volumes and restrained trading outside of the Pacific sector is seeing the Fiber still buried deeply within familiar levels.
Wednesday brings a fresh round of Markit PMIs for the EU, with Germany's Markit PMI dropping at 08:55 GMT, followed closely by the broad EU PMI at 09:00 GMT, and both indicators are expected to hold steady at their previous readings (51.5 and 51.4, respectively), though political discourse within Europe remains tense as the European Commission juggles overblown government budgets from Italy and France, while also trying to keep a close hand on the runaway Brexit scenario with January set to test investors' confidence with critical events slated for the coming weeks.
EUR/USD Levels to watch
Post-holiday market volumes continue to lend themselves to twitchy price action, and as noted by FXStreet's own Valeria Bednarik:
Trading will continue to be erratic these days, with things falling back to normal the next one. Meanwhile, the EUR/USD pair offers a bullish stance short-term pressuring the 1.1460/80 resistance area. In the 4 hours chart, the 20 SMA provides an immediate support around 1.1425, advancing above the larger ones, which also present bullish slopes. Technical indicators in the mentioned chart hold into positive ground, with the RSI gaining upward traction, somehow supporting additional gains ahead.
Support levels: 1.1425 1.1390 1.1355
Resistance levels: 1.1485 1.1525 1.1560