EUR/USD confined in a narrow trading band near weekly tops

Haresh Menghani FXStreet

The EUR/USD pair consolidated its sharp recovery move from Wednesday's multi-week lows and was confined in a 15-20 pips narrow band around multi-day tops near 1.0670-75 band.

Despite of the recent upbeat US economic data, including a trio on Thursday, and growing prospects for an eventual Fed rate-hike action, the greenback has struggled to gain any fresh traction as investors remained cautious and awaited more details on the US President Donald Trump's 'phenomenal' tax plans.

The US economic data released on Thursday showed weekly jobless claims rose less-than-expected while the Philly Fed manufacturing index soared to its highest level since 1984. Furthermore, building permits and housing starts readings also surpassed consensus estimates but could only provide a temporary respite for the US Dollar.

With no relevant fundamental triggers, in-terms of major market moving economic releases, the US Dollar price dynamics would remain an exclusive driver of the pair’s movement on Friday.

Technical levels to watch

From current levels, a follow through up-move is likely to confront resistance near 1.0700 round figure mark above which the momentum could get extended towards 1.0725-30 region ahead of 1.0755-60 strong hurdle.

On the flip side, 1.0655-50 area is likely to protect immediate downside, which if broken could accelerate the slide towards 1.0625 intermediate support before the pair eventually breaks below 1.0600 handle and head towards testing 1.0570 strong horizontal support.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0597

21% Bullish
57% Bearish
21% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0604

43% Bullish
57% Bearish
0% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.0369

13% Bullish
74% Bearish
13% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.