The US dollar is seen fresh selling against its six major competitors, as markets remain wary over the US tax reform bill. Stay current on the 15 December EURUSD Technical Analysis.
15 December, GKFX – The post-ECB sell-off in the EUR/USD pair halted at 1.1765, as the bulls regain control and take the rates back towards the 1.1800 barriers amid resurgent USD selling seen across the board.
- Solid Euro area PMIs remain supportive.
- ECB – no commitment of tightening yet.
- Back above 5 & 10-DMA barriers near 1.1780.
- EUR/USD: A test of 100-DMA at 1.1809 likely?
Despite, no hints by the ECB on the interest rates outlook, the downside in the spot remains cushioned, as the EUR bulls continue to cheer the upward revisions made to its growth projections alongside a raft of solid manufacturing PMI reports released from the Euro area economies.
- French manufacturing PMI rises to 207 months high in December
- German manufacturing PMI rises to all-time high
- Eurozone manufacturing reaches record high in December
Meanwhile, the renewed uptick seen in the major can be also attributed to fresh selling seen in the US dollar against its six major competitors, as markets remain wary over the US tax reform bill after two Senate Republicans advised changes to the proposed tax overhaul plan late-Thursday.
Further, a dovish FOMC policy statement continues to undermine the sentiment around the greenback, as markets look past upbeat US retail sales data reported a day before. Attention now turns towards the Eurozone trade balance and US industrial production data, which will wrap up an eventful Fed-ECB week.
15 December EURUSD Technical Analysis
Valeria Bednarik, Chief Analyst at FXStreet, explains:
“Technical indicators eased from near overbought readings but lost downward strength once they reached their mid-lines, now aiming to regain the upside. The pair has an intermediate support at 1.1750 and a stronger one in the 1.1715 region, where it bottomed twice over the last few weeks. The main resistance is still the 1.1870 region, as only above it the pair will regain its bullish stance. Support levels: 1.1750 1.1715 1.1660. Resistance levels: 1.1835 1.1870 1.1910.”
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