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Euro Currency Trades in a Narrow Price Range

Euro

The euro currency is trading in a narrow price range as we head into Thursday’s trade session. The EUR/USD currency exchange rate is trading just below the fifty (50) hour simple moving average near 1.1325. Price action is also above the one hundred (100) hour simple moving average.

Overnight, Federal Reserve Chair Jerome Powell continued his testimony before Congress. Powell said that the central bank “does not see wages moving up at a troubling rate that would spark inflation.” He also referred to the current spike in inflation as “transitory” and he expects price pressures to ease by the middle of next year. “It is appropriate we consider speeding taper at next meeting to wrap it up earlier,” Mr. Powell said.

Today’s economic calendar is fairly light. The United State will publish weekly initial and continuing jobless claims from the Labor Department. Tomorrow, Friday, the U.S. will publish their November non-farm payroll (NFP) report, monthly unemployment rate, labor participation rate and average hourly earnings.

The euro area will publish their monthly unemployment rate. The United Kingdom has no top tier economic data scheduled for release and neither does Canada. 

Daily Euro Currency Technical Analysis

Looking at the above one hour MT 4 price chart, the technical indicators do not look oversold as euro buyers still remain scarce. The EUR/USD Forex pair is trading in a narrow trade range from 1.1318 to 1.1350/1. The euro currency is also challenging the 50 hour simple moving average around 1.1325.

A daily close below the 50 hour simple moving average will open the door to challenge the 100 hour simple moving average near 1.1290. The 200 hour simple moving average lines up at 1.1268.

On the upside, there is immediate technical resistance lining up at 1.1360. A daily close above 1.1360 opens the door for the 30 November swing high price level at 1.1382. This is followed by the upside barrier at 1.14.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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