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After US statistics, the EUR/USD remains over 1.1300.

  • 30 December, 2021
  • 6:00 pm EET

After US statistics, the EUR/USD remains over 1.1300.

In the early American session, the EUR/USD remains above 1.1300 as markets remain volatile ahead of the New Year break. The dollar is holding its ground as statistics from the United States revealed on Thursday that weekly initial jobless claims fell to 198,000 from 206,000 in the previous week.

The EUR/USD pair is still trading within its December range of 1.1220/1.1382. the pair is developing a few pips above a flat 20 SMA, which converges with a Fibonacci level at 1.1305. Meanwhile, technical indications remain neutral, with no directional strength.

The short term picture is also neutral, as the pair continues to seesaw about directionless moving averages on the 4-hour chart, while technical indicators oscillate around their midpoints. It’s unlikely that the pair will find their way in the following hours, as we approach the lengthy New Year’s holiday weekend.

Levels of support: 1.1305, 1.1265, and 1.1220

1.1345, 1.1380, and 1.1425 are the resistance levels.

During European trading hours, the shared currency gave up and returned to trade at approximately 1.1300 versus its American counterpart, as the greenback reduced losses, aided by consistently high government bond yields. The dollar, on the other hand, failed to hold its gains, and EUR/USD soared to the current 1.3330 level ahead of the US start.

Treasury rates in the United States rose on Wednesday, adding to the gains seen so far this Thursday. The 10-year Treasury note yield peaked at 1.55 % and is now hanging at 1.53 % . Stocks trade mixed, showing an increasing pessimistic market mood but failing to provide directional cues for currency traders.

According to European Central Bank policymaker Robert Holzmann, inflation would likely peak “before the turn of the year, then steadily drop,” adding that the central bank will have to focus on progressively phasing out negative interest rates and unconventional monetary policy in 2022. Aside from that, there was no meaningful news from the EU. The United States released Initial Jobless Claims, which fell to 198K in the week ending December 24.

After reaching its highest levels of the month on Wednesday, just around 1.1370, the EUR/USD has retreated to within recent ranges. Earlier in the day, the pair hit its 21-day moving average around 1.1300, but has since rebounded to about 1.1330, where it trades down roughly 0.1 % on the day. Given that markets have been in holiday mode this week, the pair’s failure to breach above December’s 1.1240-1.1360ish levels is not surprising. Indeed, for many European nations, Thursday is the final trading session of the year, although for the majority of European nations, markets open on Friday for a half-day.

 

Top Reddit stocks to watch

Below is a list of the top 10 most mentioned US stocks on the WallStreetBets thread on Reddit over the last 24 hours on December 30, 2021, according to data from Quiver Quantitative. Exchange-Traded Funds (ETFs) have been excluded.

  1. Tesla
  2. GameStop
  3. NVIDIA
  4. Advanced Micro Devices 
  5. Alibaba
  6. Robinhood
  7. Palatir
  8. Apple
  9. Nio
  10. AMC Entertainment 

 

Yesterday Elon Musk had sold another $1 billion shares of Tesla sold, and exercised his stock options for next year. This signals the end of his selling spree which has seen around $11 billion worth of shares sold since early November. Shares rose 1.4% in premarket trading yesterday but ultimately closed lower.

 

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