- Pair fails to recover and holds at weekly lows.
- Euro ends week lower versus US dollar and also against GBP and CHF.
The euro was unable to recover ground against the US dollar on Friday. After reaching levels near 1.1250 tuned again to the downside and it was about to end hovering around 1.1215/20, down 70 pips from the level it had a week ago.
“The EUR/USD pair fell for a second consecutive week, approaching the yearly low of 1.1175 as fear ruled. The common currency started the week with a positive stance amid a better-than-expected German IFO survey, which brought temporal relief by coming above the market's expectations. The upward mood, however, didn't last long and was quickly reverted throughout the rest of the week, as an inverted US Treasury yields' curve and more data from the EU pointing to a deeper economic slowdown in the Union, sent investors running into safety, with the greenback being the overall winner”, wrote Valeria Bednarik, Chief Analyst at FXStreet.
The weekly and the monthly chart shows the EUR/USD under pressure and with a bearish bias that could point to a test of March lows next week. An improvement in risk sentiment could help the euro.
Key economic data from the US will be released next week. The latest numbers and recession fears continue to favor the Fed’s dovish stance. As fears about the global slowdown expanded, other central banks, including the ECB, turned also dovish offsetting the negative effect on the US dollar of the end of rate hikes from the Fed.
EUR/USD Levels
On the downside, 1.1200 and 1.1175 (March low) could be seen as key supports for the next days. A break lower could clear the way to a slide to 1.1100, the next medium term support. On the upside, a level to watch next week is 1.1285 (Mar 27 high / Mar 6 low) and then 1.1320/30.
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