EURUSD continue without major changes

EURUSD chart analysis

During the Asian session, the euro weakened against the dollar. Currently, the euro is exchanged for 1.1325 dollars, weakening the common European currency by 0.34% since the beginning of trading tonight. A report from the American labor market showed on Friday that the number of newly created jobs in the USA in December was significantly lower than expected (199,000 versus the expected 400,000), so the American currency has been in withdrawal since then. The reference yield of 10-year US Treasury bonds has jumped to its highest level in a year. We are still in consolidation from the end of November, and based on the current picture, we can expect that in the coming period.

Bullish scenario:

• We need a positive consolidation that, along with the MA20 and MA50 moving averages, would push EURUSD towards the upper trend line.
• We need more concrete growth above 1.14000, and after that, we could climb to 1.15000 and test the trend line.
• Break above climbs us to the previous consolidation 1.16000-1.17000, and the previous high is at 1.17000.

Bearish scenario:

• We need negative consolidation and a retreat below 1.12000 last year’s low.
• After that, we can expect a further descent towards the next support at 1.10000. A fall into that zone would form a new low in the last 12 months.

Market news

According to economists’ expectations, unemployment rates in the eurozone continued to fall in November. The unemployment rate fell to 7.2 percent from 7.3 percent in October.

In November, the number of unemployed in the EU was 13.984 million, of which 11.829 were in the eurozone. Compared to the previous month, the number of unemployed fell by 247,000 in the EU and 222,000 in the euro. Annually, total unemployment fell by 1.659 million in the EU and 1.411 million in the euro.

Rising energy prices could force the European Central Bank to stop “reviewing” high inflation and work to curb rising prices, especially if the green transition proves to be inflationary, ECB board member Isabel Schnabel said on Saturday.

Inflation has reached a record 5% in recent months, more than twice the ECB’s 2% target, but the bank has not tightened its policy so far, arguing that price growth will slow on its own as one-time passing factors are the main reasons for high inflation.