The EUR/USD currency pair achieved stronger gains as it jumped to the 1.1963 resistance, its highest level in three months, and closed last week's trading around there. The pair has been in an upward correction range since the beginning of September trading, and the pair has since risen to the overbought levels of the 14-hour RSI. It is still holding above the 100h and 200h SMA lines.
In the European Union, November industrial confidence beat expectations of -10.5, with a reading of -10.1. Consumer confidence during that period matched expectations at -17.6, while service sentiment declined. Prior to that, the European Composite PMI, which includes the manufacturing and services sectors together, was announced to be below expectations by 45.8, with a reading of 45.1. The Services PMI came below 42.5 at 41.3, while the Industrial PMI beat expectations of 53.1, with a reading of 53.6.
In the US, durable goods orders for October beat expectations by 0.9% with a change of 1.3%. Non-defence capital goods orders from aircraft also beat expectations by 0.5% with a reading of 0.7%, while the preliminary annual GDP growth for the third quarter missed expectations of 33.2% with a reading of 33.1%. The US jobless claims for the week ending November 20 came against expectations of 730,000, with the number of claims at 778,000. Continuing claims for the previous week were higher than expected at 6.071M versus 6.02M.
Christmas markets, a tradition cherished in Germany and neighbouring European countries, have joined the long list of annual traditions that have been cancelled or curtailed this year due to the coronavirus pandemic. November saw many European countries impose partial or more stringent closures as cases rise. Restrictions will be maintained or only partially relaxed as Advent starts Sunday.
The sprawling and bustling Christkindlesmarkt in Nuremberg, one of Germany's most popular holiday markets and tourist attractions, was cancelled a month ago. Markets across the country - including Frankfurt, Dortmund and many markets in Berlin - suffered the same fate, as authorities cancelled events or organizers concluded that it made no sense to go ahead with their plans.
Technical analysis of the pair:
In the near term, and according to the performance on the hourly chart, it appears that the EUR/USD currency pair is trading within a sharp ascending triangle. This indicates a short-term, strong, upward trend in market sentiment. The pair rose to the overbought levels of the 14-hour RSI. Therefore, bulls will target short-term gains around 1.2000, or higher at 1.2050. Bears will be looking for profits around 1.1900, or less at 1.1850.
In the long term, and based on the performance on the daily chart, it appears that the EUR/USD is breaching a descending channel formation. The pair rose in recent trading sessions amid increased upward pressure. Accordingly, bulls will target long-term gains around 1.2207, or higher at 1.2444. On the other hand, bears will be looking to jump on long-term selling around 1.1679 or lower at 1.1441.
Today's economic calendar data:
In the Eurozone, there will be the German and Spanish Consumer Price Index announcement, followed by statements from European Central Bank Governor Lagarde and a meeting of the Eurogroup. Regarding the US dollar, the Chicago PMI reading and then the pending US home sales will be released.
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