By Kenny Fisher
EUR/USD is unchanged on Monday, continuing the lack of movement which marked the pair at the end of last week. Early in the North American session, the pair is trading at 1.0970. Since then, the euro has been generally stable, holding its own against the US dollar, despite the historic rate hike by the Federal Reserve last week.
In the US, November's durable goods reports were unimpressive, underscoring weakness in the US manufacturing sector. Core Durable Goods slipped by 0.1%, short of the forecast of a 0.1% gain. Durable Goods came in at 0.0%, but this beat the estimate of -0.6%. Housing numbers also disappointed, as New Home Sales dipped to 490 thousand, well off the estimate of 507 thousand. This reading comes on the heels of Existing Home Sales, which posted a weak reading of 4.76 million, its worst performance since April 2014. There was some good news from consumer indicators, as the UoM Consumer Sentiment improved to 92.6 points, above the forecast of 92.1 points and marking a 4-month high.
It's been a volatile couple of months for EUR/USD. The euro plunged close to 500 points in November, in the aftermath of the ECB policy meeting shocker where the ECB held off from implementing further easing moves, despite hints from ECB head Mario Draghi that he was prepared to take drastic action to kick-start the moribund Eurozone economy. However, the euro has shown resilience, recovering all of these losses in the month of December. This week has started off very quietly, but we could see some choppiness due to thin liquidity in the markets during Christmas week.
Monday (Dec. 28)
- There are no European or US events on Monday.
EUR/USD for Monday, December 28, 2015
EUR/USD December 28 at 13:50 GMT
EUR/USD 1.0973 H: 1.0992 L: 1.0956
- The pair posted gains in the Asian session and continued upwards in European session, but has retracted and given up some of these gains.
- 1.0941 is a weak support level.
- There is resistance at 1.1087
- Current range: 1.0847 to 1.0941.
Further levels in both directions:
- Below: 1.0941, 1.0847, 1.0732 and 1.0659
- Above: 1.1087, 1.1172 and 1.1278
OANDA's Open Positions Ratio
In the EUR/USD ratio, short positions command a strong majority (60%). This is indicative of trader bias towards the euro breaking out and heading downwards.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.