The EUR/USD is shuffling its feet on Monday as traders take the opportunity to gather themselves up ahead of this week’s hectic showing from multiple central banks across the globe. Europe sees an update from the European Central Bank’s (ECB) Bank Lending Survey and January’s preliminary Consumer Confidence, both due on Tuesday. Wednesday drops a fresh round of euro area Purchasing Manager Index (PMI) figures, and investors will be bracing for another rate call from the ECB on Thursday.
The EUR/USD continues to trade into a technical midrange between major moving averages as markets reach a shaky equilibrium between rate expectations and economic outlook between the Euro (EUR) and the US Dollar (USD). Intraday action continues to squeeze into chart space near 1.0900, capped off by the 200-hour Simple Moving Average (SMA) near 1.0920, and the Euro is down 1.3% against the US Dollar in 2024. Despite recent decline, the EUR/USD is stubbornly holding onto recent technical levels. Daily candlesticks see the EUR/USD drifting within chart paper between the 50-day and 200-day SMAs at 1.0921 and 1.0845 respectively. The pair’s long-term momentum is still leaning bullish as higher lows continue to march upwards, but topside gains are beginning to thin out and the 1.1000 handle is beginning to form into a hard technical resistance barrier.
