EURUSD Eyes Key Resistance A Pivotal Day Ahead

By Tomasz Wisniewski|

Published: December 22 2023, 06:37 GMT+0

EURUSD Eyes Key Resistance A Pivotal Day Ahead

Thursday presented a mix of influences, with the GDP data from the US taking center stage. The GDP growth, coming in at 4.9% against the anticipated 5.2%, painted a somewhat subdued picture of the American economy. This underperformance in GDP growth, coupled with slightly higher unemployment claims, has placed a mild damper on investor sentiment towards the US dollar, reflected in its marginal weakening.

The UK’s retail sales figures, expected to show a 4.5% rise, will likely inject early volatility, particularly for GBP traders. This data could provide a much-needed respite for the British Pound, which has been under pressure following the lower-than-expected UK inflation figures.

As the day progresses, the market’s attention will pivot to North America. The US Core PCE Price Index and revised University of Michigan Consumer Sentiment Index are poised to be today’s highlight. Given the recent dovish signals from the Fed and fluctuating consumer confidence, these metrics will offer crucial insights into the health of the US economy and consumer behavior.

Commodities traders are witnessing an intriguing scenario unfold in oil markets. Both WTI and Brent are at a critical juncture, testing their respective mid-term downtrend lines. A breakout above these levels could signal a shift to a bullish trend in the short to mid-term, making today’s session crucial for oil market participants.

EURUSD traders are closely monitoring the 1.10 resistance level. A break above this threshold may open doors to new bullish opportunities, marking a significant shift in the pair’s dynamics.

Lastly, equity indices, having experienced a significant sell-off on Wednesday, appear to be entering a correction phase. How this plays out in today’s session could set the tone for market sentiment heading into the holiday season.