Forex Marketz Daily Forex News – Fully Markets Update
Looking at the euro currency on the above daily EUR/USD MT 4 price chart, the world’s most liquid exchange rate is trading around 1.2150 and has appreciated 1.5 percent, so far, for the week.
There is still broad based weakness for the U.S. dollar (USD) which has supported the sentiment linked currency like the euro (EUR). There seems to be some progress in the United States towards a bipartisan $908 billion fiscal stimulus aid package. Next up, should the U.S. Senate and lower House in the Congress pass this aid package will be to hammer out a new federal budget which needs to happen by next week.
The greenback’s weakness is likely to last through the New Year and into 2021 as a new presidential administration is being sworn in on 20 January. This is when President-elect Joe Biden takes office. Forex traders should keep in mind that the global coronavirus pandemic (Covid-19) is spreading out of control in the United States.
This has slowed the economic recovery as most states, according to Federal Reserve’s Beige Book, released this week, are showing slowed economic growth, none at all or very modest growth.
The labor sector is being hit hard as coronavirus strains the economy again. Today the U.S. Labor Department will publish their November non-farm payroll (NFP) report, unemployment rate, monthly average hourly earnings and labor participation rate.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above daily MT 4 chart, the euro currency did inch higher yesterday against the greenback. This was the third day in a row that the EUR/USD Forex market gained. With that said, the 14 day relative strength index (RSI) is moving towards seventy (70) and overbought. There was also a formation of a candle with a long upper wick which could support price exhaustion at this price level.
On the downside, the short term five (5) day simple moving average at 1.2078 is the first downside barrier to come into play. A daily close below this level opens the door to challenge the ten (10) simple moving average that lies up at 1.1990/91. Any close below 1.20 could bring the bars into this Forex market.
On the flipside, if the EUR/USD continue to push higher, the first layer of technical resistance lines up at the Thursday high price point. This level is at 1.2175 with the key psychological level of 1.22 then coming into focus.
