Eurusd Is Staying Close To 10610

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Eurusd Is Staying Close To 10610

EUR/USD Is Staying Close To 1.0610 Ahead Of The Holiday Season

EUR/USD was last seen trading close to $1.0610 as the EUR buyers are trying to gain the upper hand after 2 days of losses. In addition, the market's mood is also very cautious, and then there is the holiday season. As a result of all these factors, the movement in EUR/USD will remain very limited.

As per technical analysis, there is a near-term support line located around the 10.580 price level. This horizontal support line is preventing the Euro-Dollar pair from turning downside. The RSI (14) and the MACD are also sluggish, which is preventing any major price action in the EUR/USD as well.

According to analysts, the EUR/USD does need to validate its descending resistance to confirm the recovery. For now, the resistance line is present around the 10.650 price level.

Key US Data Awaited By Traders

Looking ahead, there are some key data from the USA which will set the mood for the coming week. In addition, the holiday season is also here, which limits any big moves in the EUR/USD and other FX pairs.

For the short-term direction, EUR/USD will take its cues from the Durable Good Orders and the US Personal Consumption Expenditure known as PCE.

We all know that Fed prefers to use the PCE Price Index, and many even call it the Fed's favorite indicator for checking inflation. For now, the value of the indicator is unchanged, around 0.2%.

But experts believe that the annualized results will be around 4.7% as compared to the value of 5.0%. Further, the durable goods orders from the US will likely see a 0.6% contraction during the month of November.

And last but not least, there are fears that the economic growth in the EU region will take a hit. Some of the reasons for this include the oil price cap, the Russia-Ukraine situation, and the ECB's recent comments.

For the most part, the price action in EUR/USD will remain limited until the holiday season is over. But if something major happens during this, then even big moves will become possible.

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