Technical Outlook: The EUR/USD rate lingers around 1.1050, swinging between the 50-hour and 200-hour SMAs as 2023 draws to a close.
Post-holiday trading will transition into an extended break after the New Year, with EUR/USD finding technical support from the 200-hour SMA just above 1.1000.
Daily candlesticks reflect an overbought scenario as the Euro retreats from Thursday's multi-month high near 1.1150. The 50-day SMA converges toward the 200-day SMA around 1.0850. Technical indicators, including the 14-day RSI, hint at a potential pullback from overbought conditions.
The restrained movement of EUR/USD near 1.1050 signals cautious market sentiments, with indicators suggesting a possible retreat despite recent highs. This shift may influence early market trends in the new year.