EUR/USD Forecast: Bearish scope is still limited

EUR/USD Current Price: 1.2214

• US President Donald Trump signed the coronavirus relief and government funding bill.
• Trading remains thin amid winter holidays in the northern hemisphere.
• The EUR/USD pair trades lower in range, bears still sidelined.

The EUR/USD pair hovers around 1.2200 ahead of the US opening, retreating from an early high of 1.2250. The market is trying to digest the latest news coming from the US, as, on Sunday, US President Donald Trump signed the coronavirus relief and government funding bill. Trading is thin amid the winter holidays in the northern hemisphere and the shortened weeks of Christmas and Year-End.  A holiday in the UK has exacerbated range trading.

The macroeconomic calendar has little to offer this week. The EU didn’t publish relevant figures, while the US will release later today the December Dallas Fed Manufacturing Business Index, previously at 12.

EUR/USD short-term technical outlook

The EUR/USD pair has a limited bearish scope according to intraday technical readings. The 4-hour chart shows that an intraday slide met modest buying interest around a flat 20 SMA. The longer moving averages remain below the current level, maintaining their bullish slopes. Technical indicators have turned lower but remain within positive levels, reflecting the latest decline instead of suggesting another leg lower.  

Support levels: 1.2175 1.2120 1.2080

Resistance levels: 1.2250 1.2290 1.2330

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