EUR/USD: Upside is likely to remain limited

EUR/USD has been having a hard time gathering recovery momentum. As FXStreet’s Eren Sengezer notes, the near-term technical outlook doesn't offer any convincing signs of a reversal yet.

Investors await ECB Meeting Accounts and mid-tier data releases from the US

“Later in the session, the European Central Bank (ECB) will release the December Policy Meeting Accounts. In case the publication shows that some ECB members keep an open mind about a rate hike in 2022, the shared currency could outperform the dollar, at least in the short-term.”

“In the second half of the day, December Existing Home Sales, weekly Initial Jobless Claims and Philadelphia Fed Manufacturing Survey will be featured in the US economic docket. If Thursday's data disappoint, the dollar could lose interest.”

“In case 1.1350, where the 100-period SMA on the four-hour chart and the Fibonacci 61.8% retracement of the latest uptrend align, turns into support, the pair could target 1.1380 (Fibonacci 50% retracement) and 1.1400 (Fibonacci 38.2% retracement).”

“On the downside, the 200-period SMA forms dynamic support near 1.1320. With a decline below that level, additional losses toward 1.1300 (psychological level) and 1.1270 (the starting point of the uptrend coming from early January) could be witnessed.”

See: EUR/USD to edge lower towards 1.10 in the first half of the year – Westpac