EUR/USD Forecast: Short-lived corrective advance is not affecting the bearish potential

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EUR/USD Current price: 1.1226

  • ECB Monetary Policy Meeting Accounts reiterated policymakers’ patient stance.
  • US markets will be closed due to the Thanksgiving holiday, will work shortened hours on Friday.
  • EUR/USD bounced from its 2021 low but retains its bearish stance.

The EUR/USD is up on a quiet Thursday, trading in the 1.1220 price zone. Demand for the greenback eased after the currency reached fresh yearly highs against the EUR and multi-month highs against other major rivals. Nevertheless, the corrective retracement seems to be short-lived, as the American dollar retains its intrinsic strength.

Volumes are thin, with US markets closed due to the Thanksgiving holiday, which will also keep the US calendar empty today. In Europe, Germany released the second estimate of The Q3 Gross Domestic Product, downwardly revised from 2% to 1.7%. Also, the European Central Bank published the Monetary Policy Meeting Accounts. The document had no impact on price, as it repeated the well-known patient stance from ECB’s policymakers.

EUR/USD short-term technical outlook

The EUR/USD pair traded as high as 1.1229 before retreating, with its bearish potential intact. The 4-hour chart shows that the pair is once again retreating from around a bearish 20 SMA, while technical indicators corrected oversold conditions before turning flat within negative levels, a sign of absent buying interest. The pair will likely resume its decline once below 1.1205, the immediate support level, with a more relevant one in the 1.1160 price zone. Still, and given the US holiday, chances of such a slide are quite limited for the rest of the day.

 Support levels: 1.1205 1.1160 1.1120  

Resistance levels: 1.1250 1.1295 1.1340

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