EUR/USD rebounds toward 1.1850, holds onto weekly gains
|- EUR/USD about to end the week with a 125-pip gain.
- US dollar stages modest recovery during the American session.
The EUR/USD pulled back during the American session amid a recovery of the US dollar across the board. The pair fell from 1.1860 finding support above 1.1825. It is hovering around 1.1840, 125 pips above the level it had a week ago.
Despite Thursday’s correction, EUR/USD is holding onto recent gains, about to post the highest weekly close since August. The key driver has been a decline of the US dollar. The DXY stands below 93.00, on its way to the lowest weekly close in seven weeks.
The dollar is about to end the week on the back foot ahead of critical days. It will be the week before the US Presidential elections, more talks and uncertainty about fiscal stimulus and many economic reports. In Europe, the key event next week will be on Thursday with the European Central Bank meeting.
Technical outlook
The EUR/USD retains its long-term bullish bias according to Valeria Bednarik, Chief Analyst at FXStreet. “The pair has continued to range above a bullish 20-week SMA which advances way above the larger ones. Technical indicators remain without directional strength although well into positive levels.”
The daily chart indicates a neutral technical stance, with the risk also skewed to the upside, as the pair has recovered above its 20 DMA on Monday, holding above it for the rest of the week, noted Bednarik.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.