Weak data on US consumer confidence as well as the low demand for assets in the US dollar from large market players led to a decline against most of the world's currencies, including the euro.
Speculative demand for the single European currency may continue until the end of the week, so it is expected that short positions are best only after the major resistance levels were already been updated.
According to America's National Association of Realtors, the number of signed contracts for US housing sale in November increased. Hence, the sale index in the secondary housing market in November this year increased by 0.2% versus the previous month, to 109.5, an increase of 0.8% compared to the same period last year. Economists predicted that the index will remain unchanged.
But the consumer confidence index in the United States fell sharply at the end of the year after reaching a maximum in November. According to the Conference Board report, the index fell to 122.1 points from 128.6 points in November, while economists predicted that the index will reach 128.2 points in December.
As noted in the report, the decline was due to the fact that a number of consumers were less optimistic about the prospects for the business and labor market in the next few months.
The index of current conditions rose to 156.6 points against 154.9 in November. The expectations index fell to 99.1 points against 111.0 points in November.
The positive data to reduce the unemployment rate in France had supported the euro by the end of the North American session on Wednesday. According to the report of the French Ministry of Labor, the number of unemployed in November this year fell to 0.8% in contrast to October and reached 3,454,100. Compared to the same period of the previous year, the number of unemployed decreased by 0.1%.
The unemployment rate in France for the third quarter of 2017 increased to 9.7% against 9.5% in the second quarter. Nevertheless, unemployment is expected to fall to 9.4% by mid-2018 based on the predictions of leading economic agencies.
As for the technical picture of the EUR/USD pair, the speculative demand for the euro could lead to the renewal of significant resistance levels and even to their breakdown amid the low volume of trading.
Currently, the level of 1.1930 was maintained due to the continued growth of the trading instrument, the breakthrough of which will lead to the continuation of the upward trend with an expected result for the update of 1.1965 and the major target to test the 1.2001 level.
If buyers are less active than 1.1930, pressure may form on the euro during the second half of the day, especially after the publication of the good report regarding the US labor market, which is scheduled to be released for the second half of the day.
* The presented market analysis is informative and does not constitute a guide to the transaction.