• EUR/USD meets support in the 1.1300 neighbourhood.
  • The dollar looks offered on the back of lower yields.
  • ECB Lagarde, flash Consumer Confidence next on tap.

The single currency has regained its smile at the end of the week, helping EUR/USD return to the 1.1350 region.

EUR/USD up on dollar weakness

EUR/USD is regaining upside traction and meeting buying interest in the 1.1300 zone after Thursday's pullback. The recent price action is overall consolidative amidst alternating risk appetite trends in global markets.

Friday’s uptick reflects an offered greenback which has come under pressure due to the decline in US yields along the curve.

On the calendar for the euro, we have Consumer Confidence for the month of January from the the European Commission (EC) along with speeches by ECB Board member Fernandez-Bollo and Chairwoman Lagarde.

Across the pond, the only release will be the Leading Index tracked by the Conference Board.

What to look for around EUR

EUR/USD came under pressure after hitting new YTD highs in the 1.1480 region earlier in the month, finding some contention in the low-1.1300s so far this week. The Fed-ECB policy divergence and the performance of yields are expected to keep driving the price action around the pair for the time being. Recently ECB officials have been quite vocal in acknowledging that high inflation could last longer in the euro area, sparking fresh speculation the central bank could raise rates by the end of 2022. The unabated advance of the coronavirus pandemic remains as the exclusive factor to look at when it comes to economic growth prospects and investors’ morale in the region.

Key events in the euro area this week: ECB Lagarde, EC’s Flash Consumer Confidence (Friday).

Eminent issues on the back boiler: Asymmetric economic recovery post-pandemic in the euro area. ECB stance/potential reaction to the persistent elevated inflation in the region. ECB tapering speculation/rate path. Italy elects President of the Republic in late January. Presidential elections in France in April.

EUR/USD levels to watch

So far, spot is gaining 0.27% at 1.1341 and faces the next up barrier at 1.1480 (100-day SMA) seconded by 1.1482 (2022 high Jan.14) and finally 1.1510 (200-week SMA). On the other hand, a break below 1.1300 (weekly low Jan.21) would target 1.1272 (2022 low Jan.4) en route to 1.1221 (monthly low Dec.15 2021).

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD drops towards 7000 amid resurgent USD demand

AUD/USD drops towards 7000 amid resurgent USD demand

AUD/USD is easing back towards 0.7000,  fading the rebound led by China's central bank LPR rate cut. A US dollar rebound, despite improving mood, weighs heavily on the aussie. The pair ignores the uptick in the S&P 500 futures. 

AUD/USD News

EUR/USD retreats from seven-week-old resistance below 1.0600

EUR/USD retreats from seven-week-old resistance below 1.0600

EUR/USD eases from a two-week high as a short-term key hurdle defends sellers around 1.0580 during Friday’s Asian session. The major currency pair rallied the most since early March the previous day while refreshing the fortnight high.

EUR/USD News

Gold remains stuck within sideways channel

Gold remains stuck within sideways channel

The gold price has been trading between support and resistance on the daily chart. XAU/USD is trading lower, having fallen from a high of $1,844.69 to a low of $1,837.73. The yellow metal is trading near a one-week high made in the prior session.

Gold News

How to trade the next 20% upswing in Binance Coin price

How to trade the next 20% upswing in Binance Coin price

Binance Coin price is on a recovery rally and shows promise of a further uptrend. Adding credence to this run-up is the price inefficiency that is likely to propel BNB higher. Binance Coin price crashed to $205 on May 13 as the crypto markets crumbled due to the LUNA-UST debacle.

Read more

Tesla regains $700 despite cut from S&P 500 ESG Index

Tesla regains $700 despite cut from S&P 500 ESG Index

Tesla's stock slips as it is kicked out of the S&P 500 ESG index. Elon Musk reacts aggressively, calling it a scam. Growth fears dominated and weighed on the overall market mood, leading to a negative close on major Wall Street indices. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures