FXOpen
EUR/USD
Euro buyers were unable to overcome resistance at 1.0620–1.0600. Following a sharp decline in November, the pair attempted a recovery and made several attempts to hold above 1.0600, but so far, all efforts have failed.
Yesterday, the European Central Bank (ECB) meeting delivered a widely anticipated 25-basis-point cut to the base rate, lowering it from 3.25% to 3.00%. In response, EUR/USD saw a sharp decline, breaking below key support at 1.0500.
Technical analysis of EUR/USD suggests the possibility of a further bearish impulse if the price breaks the recent low near 1.0340. The downward scenario would be invalidated if the pair manages to secure a strong close above 1.0620.
Key events for EUR/USD pricing today:
→ 10:00 (GMT+3): German trade balance data.
→ 11:00 (GMT+3): Harmonised Consumer Price Index (HICP) for Spain.
→ 13:00 (GMT+3): Eurozone industrial production data for December.
GBP/USD
The return of sellers has also been evident in GBP/USD. After testing key resistance at 1.2810–1.2790 for several days without sustaining upward momentum, the pair fell back below 1.2700.
Technical analysis of GBP/USD points to the potential continuation of the downward trend, as a bearish “tower” pattern is forming on the daily timeframe. The nearest support levels are at 1.2620–1.2600. If the pair consolidates below these levels in upcoming sessions, a retest of November’s yearly lows near 1.2490 is likely.
Key events for GBP/USD pricing today:
→ 10:00 (GMT+3): UK GDP data for October.
→ 10:00 (GMT+3): UK manufacturing production data.
→ 16:00 (GMT+3): Monthly GDP tracker release by NI.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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