EUR/USD – Trade With Caution As Uncertainty Prevails

My FX List
January 4, 2023
EUR/USD (Long)

Take Profit – 1.0500

Stop Loss – 1.0725

Timeline – 1-2 days

EUR/USD (Short)

Buy Stop – 1.0650

Take Profit – 1.0750

Stop Loss – 1.0550

EUR/USD was trading at 1.0623, the same level where it was a couple of weeks ago. The price stands at 3.27% above the lowest point this month.

There are multiple reasons behind the current price of the most popular pair like the decline in the house price index in November, a drop in sales by up to 4% in November, and the low demand for houses for the past few months due to a high rate of interest.

A factor that could impact the price of EUR/USD is the decision made by the Chinese government to end Covid-19 restrictions. The country ending its mandatory quarantines, which had been in place since the beginning of the pandemic has been perceived as a positive news

EUR/USD has been in a consolidation phase for the last few days. The price is at the 50-day and 25-day moving averages whereas the RSI has dropped below the neutral point. The pair will most likely have a bearish breakout with a key support level at 1.0500 and resistance at 1.06670 to make a positive view.

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