Due to mixed economic data from Germany and the speech by ECB President Christine Lagarde affecting market sentiment, the EUR/USD remains stable. German import prices rose by 0.9% (expected 0.5%), while the Belgian NBB business confidence index fell to -13.8, reflecting economic uncertainty.

Lagarde expressed optimism about approaching the ECB's inflation target of 2%, with the latest inflation data at 2.2%. However, she pointed out that the inflation rate in the service sector remains at 3.9% and noted that it has "not changed significantly."

Lagarde also highlighted the significant growth disparity between Europe and the USA, attributed to energy costs and vacation plans. With German Banks closed for Christmas, limited data updates are expected this week, and EUR/USD trading is weak. Lagarde warned against taking retaliatory trade measures, which could harm the Global economy.

Technical analysis of EUR/USD.

(EUR/USD 2-hour chart Source: Easy Forex)

EUR/USD is reported at 1.0396/97, with sellers still controlling below the pivot point of 1.04473. A critical downward Trendline has created a significant Resistance level around this level, limiting bullish momentum. Recent Resistance is at 1.05128, the next Resistance at 1.05916, while the Resistance is at 1.03426, followed by 1.02760.

The Technical Indicator has strengthened the Put trend, with the 50-day moving average at 1.04286 hovering below the 200-day moving average at 1.04926. This consistency highlights ongoing selling pressure.

Unless the MMF pair breaks through 1.04473, the bearish sentiment may continue. A successful break above this level could shift momentum to test higher Resistance areas.

EUR/GBP Technical Analysis

(EUR/GBP 2-hour chart Source: Easy Forex)

EUR/GBP is at 0.8283/84, with bearish sentiment prevailing below the pivot point of 0.83118. The downtrend line near this level continues to act as a significant Resistance, limiting any upward momentum.

Direct Resistance is at 0.83449, with the next level at 0.83734. On the downside, the Resistance is seen at 0.82701 and 0.82249. Technical Indicators indicate a Put trend, with the 50-day moving average at 0.82804 slightly below the 200-day moving average at 0.82849.

If it falls below 0.82701, it may further extend the decline, while a decisive break above 0.83118 could suggest a shift in market sentiment towards testing higher Resistance levels.

EUR/JPY Technical Analysis

(EUR/JPY 2-Hour Chart Source: Easy Forex)

EUR/JPY is trading at 162.0080, with bullish momentum strengthening above the pivot point of 162.354. Immediate resistance is at 163.801, with the next target at 164.988. On the downside, the Resistance is at 161.073 and 159.872.

Technical Indicators align with bullish sentiment, with the 50-day moving average (162.318) still above the 200-day moving average (161.085), confirming the upward trend. If this MMF continues to hold above 162.354, it may push the MMF towards higher resistance levels, while a break below this key level could trigger new selling pressure.

At 18:43 Beijing time, EUR/USD is reported at 1.0396/97, down 0.31%. EUR/GBP is reported at 0.8283/84, down 0.20%. EUR/JPY is reported at 162.0080/9810, down 0.09%.