EUR/USD hits fresh weekly highs but losses strength above 1.1670

  • USD recovered after short-lived slide following Consumer sentiment data. 
  • Spot printed a fresh weekly high before the retreat. 
  • Gold dropped sharply and boosted DXY.

The EUR/USD pair rose to 1.1676 after the release of the consumer confidence data. Afterwards, the pair pulled back toward 1.1650. The euro was unable to break above 1.1680 and then, the greenback strengthened pushing it back toward 1.1650. 

Range prevails at the end of the week 

The report of the University of Michigan showed that the Consumer sentiment index fell from 100.7 to 97.8 in November on inflation and rate hike fears, according to the preliminary reading.  The number came below expectations of a small increase.

US: Consumer sentiment declined slightly in early November - UoM

The greenback turned lower after the data and EUR/USD spiked to 1.1676, the highest level since last Friday. The euro faced a strong resistance near 1.1680.  The retreat found support above the 20-hour moving average that stands at 1.1648.

The slide of EUR/USD took place amid a modest rally of the greenback triggered by a sharp slide in gold. The ounce fell from $1283 to $1274 in a few minutes.

EUR/USD is about to end the week with a modest gain of 40 pips, still moving on a consolidation pace as it attempts to recover from 4-month lows. 

EUR/USD Short-term Technical levels 

To the upside, the pair continues to face resistance around the 1.1680 zone, above that level attention would turn to 1.1700 and then to the resistance seen at 1.1720/25 (Oct 18 & 23 low). On the flip side, the FXStreet's technical confluence indicator identifies strong support levels at 1.1645, 1.1625 and 1.1575. 

 

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