The price has increased significantly today and has managed to climb above two importnat resistance levels, remains to see if will have enough directional energy to stay bilize above these levels, could climb much higher in the coming days if the USDX will drop deeper. The EUR/USD has decreased as the USD was punished by the USDX’s impressive drop. The USDX maintains a bullish perspective as long as stays above the 102.54 static support level, could hit this level tomorrow, remains to see how will react, a drop below this level followed by a retest will open the door for more declines, this situation will force the greenback to decrease further versus the other major currencies.
The Euro-zone and the United States data have come in mixed in the yesterday’s trading session, the M3 Money Supply rose by 4.8% in November, exceeding the 4.4% estimate, but also the 4.4% growth from the previous reading period, while the Private Loans have increased by 1.9%, the indicator has come in line with expectations, beating the 1.8% increase from the former reporting period.
On the other hand the USD wasn’t impressed by the US economic data even if the Unemployment Claims have come much better, the Initial Claims have decreased from 275K to 265K in the previous week, even if the economists have forecasted an increase to 277K. Moreover the United States Goods Trade Balance has decreased further, from -61.9B to -65.3B, has come much worse comapred to the -61.5B estimate, while the Prelim Wholesale Inventories rose by 0.9%, more versus the 0.1% estimate, the indicator has increased again after the 0.1% drop from the previous reading period.
The Natural Gas indicator has decreased as well, from -209B to -237B, but I don’t think that had any impact on the EUR/USD price.