EUR/USD Slides Lower to $1.0660 – Sell Now!

In the Asian session, the EUR/USD pair is trading back and forth just above 1.0650. Investors aren’t buying or selling the major currency pair because they want to wait until after the New Year’s holiday weekend. Due to a drop in trading volume, prices across all asset classes need to be clarified.

After falling to roughly 103.50, the US Dollar Index has tried to rebound; however, the recovery move appears less confident amid a loss in safe-haven attractiveness. On Thursday, the global market’s cautiousness was reduced as the S&P500 experienced value-buying activity from market players. At the time of writing, S&P500 futures are performing poorly, but the bullish bias remains strong.

The easing of the risk-off mindset has also increased demand for US government bonds. After a four-day positive surge, the return on 10-year US Treasury yields has plummeted to roughly 3.82%.

The Federal Reserve has designated CY2022 a year of increased inflation and sustained interest rate hikes (Fed). Fed policymakers worked hard to attain price stability, but achieving 2% inflation appears distant now, with the market expecting an inflation rate much above 3% beyond QYCY2023.

The EURUSD pair has been trading sideways since yesterday, staying above the 1.0580 level to retain the bullish trend scenario valid for the future period, supported by stochastic movement at oversold zones, with a key goal of 1.0745 in sight. We remind you that a break of 1.0580 will force the price to test the most significant support at 1.0515 before making another positive move.

Today’s trading range is between 1.0560 support and 1.0710 resistance.

Today’s projected trend: Bearish