EURUSD on Friday dropped -0.03% to 1.09410. Week ending 2024-01-05 moved lower by -0.87%. What you need to know.

EURUSD Analysis

Performance
PeriodPctChgMomentum
Friday-0.03%-3.7 Pips
Week 2024-01-05-0.87%-96.4 Pips
January-0.87%-96.4 Pips

Upcoming key events for the new week (London Time)

Mon 10:00 AM Retail Trade Turnover (12-mth)
Thu 01:30 PM Initial Unemployment Insurance Claims
Thu 01:30 PM CPI Inflation Rate (12-mth)
Fri 01:30 PM PPI excluding Food and Energy sectors (12-mth)

What happened over the week

🇺🇸 U.S. Factory Orders (1-mth) in November exceed forecast and rose to 2.6% compared to previous figure -3.4, revised from -3.6% in October Source: Census Bureau
🇺🇸 U.S. Average Hourly Earnings (12-mth) in December exceed forecast and rose to 4.1% compared to previous figure 4% in November Source: Bureau of Labor Statistics
🇺🇸 U.S. Nonfarm Payroll Employment in December rose to 216K compared to previous figure 173K (revised from 199K) Source: Bureau of Labor Statistics
🇪🇺 Euro Area Core Harmonized Index of Consumer Prices (HICP) (1-mth) in December preliminary estimate exceed forecast and rose to 0.4% compared to previous figure -0.6% in November Source: Eurostat
🇪🇺 Euro Area Producer Price Index (1-mth) in November exceed forecast and dropped to -0.3% compared to previous figure 0.3, revised from 0.2% in October
🇩🇪 Germany Retail Trade Turnover (12-mth) in November exceed forecast and dropped to -2.4% compared to previous figure -0.1% in October Source: Destatis
🇺🇸 In the week ending 30 December, the advance figure for seasonally adjusted initial jobless claims dropped to 202K compared to previous figure 220K (revised from 218K) Source: Department of Labor
🇩🇪 Germany Harmonised Index of Consumer Prices (HICP) (12-mth) in December preliminary estimate rose to 3.8% compared to previous figure 2.3% in November Source: Destatis
🇺🇸 U.S. Challenger Job Cuts in December dropped to 34.817K compared to previous figure 45.51K in November
🇺🇸 U.S. Job Openings and Labor Turnover Survey (JOLTS) in November below forecast and dropped to 8.79M compared to previous figure 8.852, revised from 8.733M in October Source: Bureau of Labor Statistics
🇩🇪 Germany Unemployment Change in December exceed forecast and dropped to 5K compared to previous figure 22K in November Source: Destatis

From X (Twitter)


What can we expect from EURUSD for the new week and what happened on Friday?

EURUSD on Friday dropped -0.03% to 1.09410. Price is below 9-Day EMA while Stochastic is rising in oversold zone. For the week ending 2024-01-05, the pair dropped -0.87% or -96.4 pips lower.

Looking ahead on Monday, EURUSD looks mixed as the pair is likely to consolidate above week low of 1.08767.

For the new week, our technical outlook looks bearish, immediate support level is at 1.08631 (WS1) with break below could see further selling pressure towards 1.07853 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 1.10460 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below week low of 1.08767 would indicate selling pressure.

For the month of January, EURUSD is down by -0.87% or -96.4 pips lower.

Weekly key levels to watch out:

R31.12017
R21.11239
R11.10324
Weekly Pivot1.09546
S11.08631
S21.07853
S31.06938

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