FXstreet.com (San Francisco) - A bout of short covering saw the EUR/USD recover all of its earlier losses on Friday, and end the North American session at 1.2290 after trading in range between 1.2242 and 1.2314.
The mentioned range overnight encountered resistance at the 21-day EMA and the path of least resistance appears to be to the downside, as EUR/USD managed to print lower lows and lower highs for three straight days within a down-trending market. Also, moving averages on the weekly timeframes are pointing lower and are beginning to diverge, supporting the bearish outlook. EUR/USD sits unchanged at 1.2290 in early Asia.
In the week ahead, the market will look forward to preliminary Q2GDP releases out of the Eurozone and Japan, as well as inflation data in several countries. US CPI, PPIs, retail sales, industrial production, housing starts, and the Empire and Philadelphia Fed manufacturing indices will be released, and the UK Bank of England MPC minutes are due on Wednesday.
The mentioned range overnight encountered resistance at the 21-day EMA and the path of least resistance appears to be to the downside, as EUR/USD managed to print lower lows and lower highs for three straight days within a down-trending market. Also, moving averages on the weekly timeframes are pointing lower and are beginning to diverge, supporting the bearish outlook. EUR/USD sits unchanged at 1.2290 in early Asia.
In the week ahead, the market will look forward to preliminary Q2GDP releases out of the Eurozone and Japan, as well as inflation data in several countries. US CPI, PPIs, retail sales, industrial production, housing starts, and the Empire and Philadelphia Fed manufacturing indices will be released, and the UK Bank of England MPC minutes are due on Wednesday.
