EUR/USD is bearish in the near-term, but dollar’s bullish potential is limited

EUR/USD has posted a modest intraday advance this Wednesday, with the markets already in a holiday’s mood. The pair is technically bearish in the near-term, although the dollar’s bullish potential is still quite limited, FXStret’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The action across the different boards is limited, and among currencies, the dollar is the weakest, as the sentiment remains sour. No progress has been reported on the Brexit front, and there are market talks indicating that talks will continue within the holidays. Also, US President Donald Trump has not signed the relief bill, asking for an amendment.”

“The US published November Durable Goods Orders, which beat expectations by rising 0.9% MoM. Initial Jobless Claims improved to 803K in the week ended December 18. Personal Income, however, decreased by 1.1% in November while Personal Spending was down 0.4%.”

“In the 4-hour chart, the EUR/USD pair remains below a bearish 20 SMA, while a bullish 100 SMA provides dynamic support around 1.2140. Technical indicators head south with uneven strength, although both below their midlines.”