- The EUR/USD trimmed losses after falling to a low of 1.0830 and then recovered towards 1.0885.
- Jerome Powell acknowledged the need for evidence to declare a victory on inflation.
- US ISM PMI from November came in lower than expected.
During Friday’s session, the EUR/USD cleared many of its daily losses, recovering to 1.0885 after finding support at a low of around 1.0830. The recovery was triggered by a broad US dollar weakness, which, despite Powell’s hawkish words during his speech at Spelman College, struggles to make a move higher. In addition, the shared currency will close a 0.60% losing week after gaining more than 2% since mid-November.
In line with that, Chairman Powell acknowledged a decrease in inflation while noting that core inflation remains elevated. He emphasised the need for more evidence regarding progress in achieving the 2% inflation target. Furthermore, he mentioned that interest rates are acting restrictively but cautioned against prematurely declaring that monetary policy has reached a sufficiently restrictive stance. He then claimed that decisions on such matters would still be based on the incoming data.
On the data front, the Institute for Supply Management (ISM) Manufacturing PMI from November printed 46.7, matching its previous figure while falling short of the anticipated 47.6. Next week, the US will release its monthly Nonfarm Payrolls report which investors will closely watch.
EUR/USD levels to watch
Based on the technical indicators on the daily chart, there is a significant push of bullish momentum, but with buyers taking a break. This is indicated by the Relative Strength Index (RSI), which shows a flat position in positive territory, while the Moving Average Convergence Divergence (MACD) presents a red bar, which signals sellers are gradually are gaining strength.
On the other hand, the pair's position above the 20, 100, and 200-day Simple Moving Averages (SMAs) clearly confirms that bulls are firmly in control of the overall trend.
Support Levels: 1.0850 (20-day SMA), 1.0830, and 1.0815.
Resistance Levels: 1.0900,1.0950, 1.0970.
EUR/USD daily chart
-638370576089516108.png)
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.
Recommended content
Editors’ Picks
EUR/USD trims losses, back above 1.1650
EUR/USD remains slightly on the back foot on Friday, trading around 1.1650 amid some modest recovery in the US Dollar. Investors, in the meantime, are expected to shift their attention to next week's US inflation data release. Fed officials' comments and trade news also remain in focus.
GBP/USD turns positive near 1.3450
GBP/USD now flirts with the 1.3450 zone, managing to bounce off daily lows as the Greenback’s advance loses some traction. The British Pound remains bolstered by the BoE's hawkish cut at its meeting on Thursday. Cable remains en route to close the week with marked gains.
Gold keeps the rangebound mood near $3,400
Gold seems to have entered a consolidation phase around $3,400 per troy ounce, giving up some gains after previous highs over $3,410. The announcement that the United States would tax one-kilo and 100-ounce gold bars is also supportive of the precious metal.
Crypto Today: Bitcoin uptrend takes a breather as Ethereum, XRP bulls tighten grip
The cryptocurrency market is relatively bullish on Friday, buoyed by renewed risk-on sentiment from both institutional and retail investors. Bitcoin surged toward the $118,000 round-figure resistance before retreating slightly to trade at around $116,525 at the time of writing.
Bank of England cuts rates in dramatic meeting
The Bank of England has cut rates by a further 25 basis points to 4% but the statement hints that officials think the easing cycle is nearing its end. Policymakers are visibly worried about a more persistent bout of inflation as the headline number is way higher than target.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.