EUR/USD Analysis: approaches 1.07 mark

Dukascopy Bank Team Dukascopy Bank SA

“Improving labor markets are key if eurozone consumers are to make a solid contribution to growth over the coming months, especially as gradually rising inflation is likely to eat into purchasing power.”

– Howard Archer, HIS Global Insight (based on Bloomberg)

Pair’s Outlook
The common European currency surged against the Greenback on Friday morning, as it was on its way to the resistance put up by the January low level at 1.0709. Previously, during Thursday’s trading session the rate found support in a cluster of simple moving averages and the weekly PP at 1.0589. After that the rate jumped just slightly above the weekly R1 at 1.0659, from where the Friday’s session began. Moreover, during the move the established descending channel patter was broken. That means the rate has actually reversed and is poised to continue the surge.
Traders’ Sentiment
SWFX traders remain slightly bullish on Friday, as 53% of open positions were long on Friday. Meanwhile, 61% of trader pending commands were set up to sell the Euro.

Interested in EURUSD technicals? Check out the key levels

1. R3 1.0768
2. R2 1.0716
3. R1 1.0688
PP 1.0636
1. S1 1.0608
2. S2 1.0557
3. S3 1.0529

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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