EUR/USD Steady Over $1.0600 – Quick Update on a Buy Signal
The EUR/USD pair remains above the 1.0600 round-figure thresholds in the early North American session, with minimal movement in response to conflicting US economic data.
The US Bureau of Economic Analysis stated that the Personal Consumption Expenditure (PCE) Price Index increased by 0.1% in November, falling short of forecasts for a 0.3% increase. However, the modest disappointment was mitigated by an upward revision of the previous month’s result to 0.4% and a higher-than-expected annual rate of 5.5%.
In addition, the Core PCE Price Index (the Fed’s favored inflation gauge) increased by 0.2% month over month in November before slowing to a 4.7% year-on-year pace from 5.0%. Separately, US durable goods orders fell far short of consensus projections, doing little to excite US dollar bulls or offer impetus to the EUR/USD pair.
Still, worries that the Fed will keep its ultra-hawkish stance to keep inflation in check continue pushing up US Treasury bonds’ yields. This should help prevent further USD losses and contain the EUR/USD pair’s upside. Before placing new directional bets, consider the mixed fundamental background.
EUR/USD Technical Outlook
The EURUSD pair was under pressure yesterday to break through the 1.0580 level. Still, it stayed stable above it, starting today with a new bullish bias because the stochastic is positive. It is now ready to head towards our major predicted target of 1.0745.
So, the bullish trend scenario will keep happening as long as the 1.0580 level stays the same. Today’s trading range is likely between 1.0550 support and 1.0710 resistance.
Today’s projected trend: bullish
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