The EUR/USD pair remains confined in a narrow trading band, just above the 1.1300 mark

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The EUR/USD pair
  • The The EUR/USD pair, A goodish pickup in the USD demand acted as a headwind for EUR/USD on Monday.
  • The downside remains cushioned as investors seemed reluctant amid thin liquidity.

The EUR/USD pair remained on the defensive heading into the early North American session, albeit has managed to hold its neck above the 1.1300 round-figure mark.

Having failed to make it through the 1.1340-50 resistance zone on Friday, the EUR/USD pair witnessed a subdued/range-bound price action on the first day of a new week. The upside remains capped amid a goodish pickup in the US dollar demand, though the year-end thin liquidity helped limit any deeper losses.

The recent optimism led by reports that the Omicron variant might be less severe than previously feared was overshadowed by uncertainty over the economic impact of the continuous surge in new COVID-19 cases. This, in turn, drove some haven flows towards the greenback and acted as a headwind for the EUR/USD pair.

Apart from this, the Fed’s hawkish outlook, indicating at least three rate hikes next year, further underpinned the greenback. Investors, however, seemed reluctant to place any aggressive directional bets amid absent relevant fundamental catalyst and a rather quiet trading activity due to the year-end holiday season.

Looking at the broader picture, the EUR/USD pair has been oscillating in a broader trading range since the beginning of this month. This further warrants some caution for aggressive traders and makes it prudent to wait for a convincing breakthrough mentioned before positioning for a firm near-term direction.

Technical levels to watch

EUR/USD

OVERVIEW
Today last price1.1311
Today Daily Change-0.0009
Today Daily Change %-0.08
Today daily open1.132
TRENDS
Daily SMA201.13
Daily SMA501.1411
Daily SMA1001.1565
Daily SMA2001.1766
LEVELS
Previous Daily High1.1344
Previous Daily Low1.1304
Previous Weekly High1.1344
Previous Weekly Low1.1235
Previous Monthly High1.1616
Previous Monthly Low1.1186
Daily Fibonacci 38.2%1.1319
Daily Fibonacci 61.8%1.1329
Daily Pivot Point S11.1302
Daily Pivot Point S21.1283
Daily Pivot Point S31.1262
Daily Pivot Point R11.1341
Daily Pivot Point R21.1362
Daily Pivot Point R31.1381
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