EUR/USD: Significant near-term support seems to have formed around 1.1300

EUR/USD touched its highest level in a month at 1.1370 on Wednesday but struggled to preserve its bullish momentum. The pair was last seen edging lower toward 1.1300 as choppy action continues heading into new year, FXStreet’s Eren Sengezer reports.

Year-end flows could ramp up market volatility later in the session

“Later in the session, the US Department of Labor's weekly Initial Jobless Claims data will be featured in the US economic docket alongside the ISM-Chicago's PMI for December. These data are unlikely to trigger a noticeable market reaction but year-end flows toward the end of the European session could open the door to wild fluctuations.”

“On the downside, 1.1300 area, where the 100 and the 200-period SMA's on the four-hour chart are located, act as significant support. In case a four-hour candle closes below that level, additional losses toward 1.1270 (static support) could be witnessed.”

“Initial resistance aligns at 1.1340 (static level) before 1.1360 (post-ECB high). Although the pair managed to rise above that level on Wednesday, it retreated back below it before closing, punctuating the significance of that resistance.”

See: EUR/USD to edge lower amid double asymmetry between the US and the eurozone – Natixis