- Euro highs daily highs during Friday’s American session but remains sideways.
- EUR/USD keeps moving around 1.1850, unable to confirm levels under 1.1800, neither above 1.1900.
The EUR/USD is about to end Friday hovering around 1.1850 posting modest weekly gains but unable to break the current consolidation phase. Recently climbed to 1.1870 hitting a two day high but it failed to make a run higher.
The euro ended the week one a strong not versus the US dollar considering that on Thursday it tested levels under 1.1750. Despite all the action, including the FOMC meeting, EUR/USD keeps moving sideways around the current levels.
“The FOMC meeting this week offered a potential catalyst for fresh momentum in the foreign exchange markets but the outcome of the meeting barely met expectations and hence we see limited scope for any renewed impetus to sell the dollar. That points to this period of consolidation continuing over the short-term”, explained analysts at MUFG Bank. They continue to see the EUR/USD in consolidation mode with the range of 1.1600-1.2000 set to hold over the coming months.
EUR/USD technical outlook
Valeria Bednarik, Chief Analyst at FXStreet points out the weekly chart in EUR/USD continues to develop far above all of its moving averages, with the 20 SMA maintaining its bullish slope above the larger ones. “Technical indicators, in the meantime, stabilized well into positive ground, indicating that there’s no interest on the greenback.” She notes the daily chart retains its neutral stance.
“An immediate support level is 1.1790, followed by 1.1695, August monthly low. However, the greenback remains out of the market favour and a decline towards this last seems unlikely. If it happens, strong buying interest will likely reappear around it. Resistances, on the other hand, come at 1.1915 and 1.2011, this year high”, adds Bednarik.
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 stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.