EUR/USD Forecast: Market players now looking at 1.1000

EUR/USD Current price: 1.1209
Mixed US data kept supporting the USD ahead of FOMC Minutes, PCE inflation.
German IFO survey showed the Business Climate contracted for a fifth consecutive month.
EUR/USD challenging 1.1200 with a firmly bearish stance.
The EUR/USD pair fell to 1.1199 during the European morning, as the greenback retained its strength ahead of US data releases, while the shared currency was hit by dismal local data. Germany published the November IFO survey, showing that the Business Climate contracted to 96.5, falling for a fifth consecutive month. Expectations dropped to 94.2 while the assessment of the current situation contracted to 99. At the same time, market talks point to a total lockdown in the country, while the government studies make covid vaccines mandatory.

The pair fell further after the US released multiple reports. October Durable Goods Orders fell 0.5% MoM, worse than anticipated, while Initial Jobless Claims for the week ended November 19 improved to 199K, the best reading since the pandemic started. The country’s Gross Domestic Product was upwardly revised to 2.1% in Q3, slightly below the 2.2% expected. Finally, the Goods Trade Balance posted a deficit of $82.9 billion in October and according to preliminary estimates.
The US still has to publish core PCE inflation and the FOMC Meeting Minutes in the American afternoon, both much more relevant than the figures already out.

EUR/USD short-term technical outlook
Now trading around the 1.1200 threshold, EUR/USD has room to extend its decline in the near term. The 4-hour chart shows that the 20 SMA maintains its bearish slope while providing intraday resistance, currently at 1.1250. Meanwhile, the Momentum indicator resumed its decline within negative levels as the RSI consolidates oversold readings. The pair has a strong static support in the 1.1160 area, where it bottomed in June 2020, with a break below it exposing the 1.1000 threshold in the upcoming weeks.

Support levels: 1.1160 1.1120 1.1075

Resistance levels: 1.1210 1.1250 1.1290