EUR/USD - EUR/USD Traded Higher vs G10 Peers - 12/22/2016 (GMT)

The EUR/USD pair is moving lower, -1.46% so far this month, and is ready to snap the third consecutive negative month. However, the euro traded higher against the G10 peers and also rebounded versus the U.S. dollar, during yesterday’s session. The single currency spent most of the day above the 1.0400 psychological level thanks to better than expected European data and U.S. dollar weakness to move higher. With no significant economic reports scheduled for release today, euro will trade on the market’s appetite for dollars.

As we mentioned in a previous analysis, we expect the common currency to trade sideways within a consolidation area with upper boundary the 1.0505 resistance barrier and lower boundary the 14-year low at 1.0352 for the next sessions. A break in either direction will expose the price towards the 1.0700 handle and 1.0200 obstacle respectively.

Technical indicators on a daily timeframe, are following a negative path while the RSI indicator is rising with some weak momentum. On the other hand, the MACD oscillator is holding below both, its trigger and zero lines whilst the three SMAs on the same chart are pointing downwards.