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Manufacturing PMIs for December and U.S politics will be key drivers today. COVID-19 updates will also draw attention, however.
For the EUR
It’s a particularly busy day ahead on the economic calendar. December manufacturing PMI numbers for Italy and Spain are due out later this morning. Finalized PMIs for France, Germany, and the Eurozone are also due out.
Barring a marked revision to prelim figures, Italy and the Eurozone’s PMI numbers will likely have the greatest influence.
Away from the economic calendar, COVID-19 news will also provide direction.
At the time of writing, the EUR was up by 0.32% to $1.2254.
For the Pound
It’s a relatively quiet day ahead on the economic calendar. Finalized manufacturing PMI figures for December are due out later today.
Barring a marked revision to prelim figures, however, the numbers are unlikely to have a material impact on the Pound.
Progress on the COVID-19 vaccine front and post-Brexit updates will provide direction on the day.
At the time of writing, the Pound was up by 0.10% to $1.3686.
For the USD
It’s a relatively quiet day ahead on the economic calendar. Finalized manufacturing PMI figures are due out later today.
The numbers are unlikely to have a material impact on the Dollar, however.
Expect chatter from Capitol Hill and updates on COVID-19 to continue to drive the Greenback. Key in the early part of the week is the Senate race, with Georgia’s runoff tomorrow
EUR/USD received support near 1.2220 and is trying to settle above the resistance at 1.2250.
EUR/USD has recently failed to settle below the support at 1.2220 and is trying to settle above the nearest resistance level at 1.2250. In case this attempt is successful, EUR/USD will move towards the next resistance level at 1.2280. RSI has recently declined back into the moderate territory so there is plenty of room to gain upside momentum.
If EUR/USD gets above the resistance at 1.2280, it will head towards the recent highs at 1.2310. A successful test of this level will push EUR/USD towards the next resistance at 1.2325.
On the support side, the nearest significant support level for EUR/USD is located at 1.2220. In case EUR/USD declines below this level, it will head towards the next support at the 20 EMA at 1.2195.
A move below the 20 EMA will present a material problem for euro bulls as it will signal that EUR/USD has lost its near-term upside momentum. In this case, EUR/USD will quickly get to the test of the next support at 1.2175.
GBP/USD settled above the resistance at 1.3665 and is trying to get to the test of the next resistance level at 1.3710.
GBP/USD managed to get above the resistance at 1.3665 and is trying to develop additional upside momentum. RSI remains in the moderate territory so there is plenty of room to gain momentum in case the right catalysts emerge.
The next resistance level for GBP/USD is located at 1.3710. GBP/USD has recently made an attempt to get to the test of this level but this attempt was stopped near 1.3700.
If GBP/USD manages to settle above the resistance at 1.3710, it will move towards the next resistance level which is located at 1.3755.
On the support side, the previous resistance at 1.3665 will likely serve as the first support level for GBP/USD. In case GBP/USD declines below this level, it will move towards the next support level at 1.3625. A move below this level will open the way to the test of the next support at 1.3575.
Gold Price Chart: Key resistances and supports
The Technical Confluences Indicator shows that the path of least resistance is to the higher side, as XAU/USD has recaptured a minor resistance now support at $1922. That level is the pivot point one-week R2.
The bulls now eye the immediate barrier at $1926, which the previous high on four-hour.
Acceptance above the latter could trigger a quick rally towards $1942, the pivot point one-week R3.
The next strong hurdle is seen at $1948, where the pivot point one-month R1 lies.
On the flip side, a breach of the abovementioned cushion at $1922 could expose powerful support at $1911, where the previous low four-hour, pivot point one-week R1 and Bollinger Band one-day Upper coincide.
The next downside target awaits at the intersection of the SMA5 four-hour and previous month high at $1908.
A dense cluster of healthy support levels is aligned just above $1900, which is the convergence of the previous week high, Fibonacci 61.8% one-day and pivot point one-day R1.
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