- EUR/USD about to post the highest weekly close since May 2022.
- US Dollar back under pressure, heads for sharp weekly losses.
- US Consumer Confidence rises more than expected in January.
The EUR/USD trimmed daily losses during Friday’s American session, rising back above 1.0800. The euro was holding onto significant weekly gains, headed toward the biggest close since May 2022.
US Dollar recovers but remains under pressure
The US Dollar rebounded modestly on Friday after a sharp decline the day before, following US inflation data. The numbers showed the Consumer Price Index slowed down further in December, increasing expectations that the Federal Reserve will hike by 25 basis points in February, instead of 50 bps.
Data released on Friday showed the University of Michigan Consumer Sentiment Index rose in January to 64.6, surpassing expectations of 60.5 and above the 59.7 of December. The numbers helped risk appetite but not the Dollar that pulled back.
EUR/USD resumes uptrend
After pulling back last week, EUR/USD resumed the upside breaking the 1.0700 area decisively. The chart shows the euro clearly bullish but many technical indicators are in overbought territory.
“Should the pair advance beyond 1.0870, the bullish case will gain adepts. 1.0950 and 1.1020 are the next resistance levels to watch, ahead of the afore mentioned 1.1106. A daily close below 1.0745 will discourage buyers, and could trigger a downward corrective extension, initially towards 1.0640 and later to 1.0515, the 50% retracement of the 2022 slump”, says Valeria Bednarik, Chief Analyst at FXStreet.
Technical levels
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: Euro recovers ground but not re-attracting bulls yet Premium

The EUR/USD rose on Monday toward the 1.0800 area, recovering some of Friday’s slide, supported by an improvement in market sentiment, amid easing concerns on the banking sector.
GBP/USD approaches 1.2300 amid a weaker US Dollar

GBP/USD rose on Monday toward the 1.2300 mark, supported by a weaker US Dollar. The pair gained momentum amid a risk-positive market atmosphere, helped by easing banking concerns. The DXY dropped below 103.00 despite higher US yields.
Gold: XAU/USD pared losses and consolidates around $1,950.00 Premium

Spot gold trades in the $1,950 price zone, sharply down on Monday as investors move away from safe-haven assets. The sentiment is positive at the start of the week amid easing concerns related to a global banking crisis.
MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high

Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew.
US Consumer Confidence Preview: No good news for Americans Premium

The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.