EUR/USD consolidates daily losses, around mid-1.1400s
• A modest USD rebound prompts some selling near a key technical hurdle.
• Disappointing Euro-zone economic data adds to the downward pressure.
• Trump’s address /US-China trade meeting update eyed for fresh impetus.
The EUR/USD pair held on to its weaker tone through the mid-European session and is currently placed at the lower end of its daily trading range, just below mid-1.1400s.
The pair struggled to build on its recent positive momentum from the 1.1300 neighborhood, touched last Thursday, and once again failed to make it through near two-month-old trading range resistance, now coinciding with 100-day SMA.
Following four consecutive days of losing streak, a modest US Dollar rebound from the lowest level since mid-October, backed by a goodish pickup in the US Treasury bond yields, was seen as one of the key factors prompting some fresh selling.
The shared currency was further weighed down by disappointing Euro-zone economic data, showing a larger than expected fall in the region's Economic Confidence index during December and dismal German industrial production figures for November.
The intraday retracement, however, remained cushioned, at least for the time being, amid growing expectations that the Fed might adopt a slower pace of rate increases, or perhaps even pause the tightening cycle in 2019 due to mounting risks from abroad.
Moving ahead, focus now shifts to the US President Donald Trump's address to the nation over the border wall and the government budget impasse. This coupled with the outcome of the US-China trade meeting might influence the broader market sentiment and eventually provide some meaningful trading opportunities.
Yohay Elam FXStreet's own Analyst writes: “Critical support is at 1.1430 which served as support late in December and also coincides with the 50 SMA. 1.1410 awaits close by.”
“Looking up, 1.1485 was the peak on Monday and also in mid-December. 1.1500 is not only a round number but was also November's high. 1.1550 was a stepping stone on the way down in October,” he added further.