The euro rate returned to the level of 1.13
On Tuesday, December 7, at the end of the day, the euro rate fell by 0.17%, to 1.1267. The euro was the weakest among the major currencies, while the Australian dollar and Canadian dollar showed the highest intraday gains. The euro / dollar rate fell to 1.1227. It is not known what could have influenced the sentiment of traders in the crosses, but the euro came under pressure across the market.
Data on the EU could have been a trigger for the dollar's weakening. 3Q EU gross domestic product was confirmed at 2.2% qoq. On the other hand, ZEW experts showed that economic sentiment in Germany and the EU improved in December, although the assessment of the current situation in Germany fell to -7.4 against the forecast of 5. Nobody expected it.
The Australian, New Zealander and Canadian have risen in price amid optimism that the Omicron coronavirus variant will be weaker than the Delta variant and will not interfere with the economic recovery. By the close of the day, the euro recovered to 1.1268, on Wednesday - to 1.1292.
Scheduled statistics (GMT +2):
At 10:15 am, ECB President K. Lagarde will deliver a speech.
At 13:30, ECB Representative Luis de Guindos will deliver a speech.
At 3:10 pm, ECB Representative Isabelle Schnabel will deliver a speech.
At 17:00 the Bank of Canada will announce its decision on the interest rate.
At 17:30, the US Department of Energy is to publish December crude oil inventories.
Current situation:
Major currencies are trading in positive territory against the US dollar, except for the Canadian. Over the past two days, the Canadian dollar has strengthened by 220 points, to 1.2632. A correctional phase has begun on it, as it is strengthening without pullbacks. The correction will last until the announcement of the decision of the Bank of Canada. The Central Bank is expected to maintain its monetary policy.
The economic calendar is blank until Friday. On Friday, the report on inflation in Germany and the United States will be released. While there is no negative news about Omicron, the dollar may remain under pressure until the FOMC meeting (December 14-15).
Technical analysis:
The price remained in the price range from November 30th. Buyers were able to win back yesterday's losses due to the rapid recovery of the euro / pound pair. In the cross-pair, the closest resistance is the level of 0.8530. If the speculators' sentiment towards the single currency does not change, then everything is free in the euro / dollar pair up to 1.1320 (U2).
On the weekly TF, a reversal pattern is formed for an upward correction with a target in the region of 1.1465. Yesterday closed with a pinbar with a bearish body and a long shadow at 76.4% of the rise from 1.1186 to 1.1383. Buyers rebounded that they are ready to defend the 1.1235 level before the US Federal Reserve meeting.
For today, support is the level of 1.1265, which was a support yesterday. The EUR / USD pair has been in a local Down trend for five days. If sellers pass it again, we should expect a retest of the 1.1228-1.1235 zone.
Summary:
on Tuesday the euro closed slightly in the red. On Wednesday, buyers fully recouped yesterday's losses. The appetite for risky assets continues as the market is optimistic about the new Omicron strain. The price remains in the range from November 30th. Sideways movement may persist until the FOMC meeting on December 14-15.