EUR/USD holds on to small gains above 1.16 amid a lack of catalysts

Eren Sengezer FXStreet

After refreshing its highest level since late August of 2015 at 1.1677 during the early trading hours of the European session, the EUR/USD pair went into a consolidation phase and retraced majority of its daily gains. At the moment, the pair is trading at 1.1637, up only 6 pips on the day.

Although the pair started the day in a calm manner following yesterday's strong rally, fresh political developments from the U.S. brought another USD selling wave. "U.S. President Donald Trump's outside legal team spokesman, Mark Corallo, has resigned amid media reports the team is being reorganized as investigations continue into alleged Russian meddling in the U.S. election and possible collusion with Trump's campaign," Reuters reported on Friday.

The US Dollar Index, which plummeted to 93.84, is now moving calmly around 94 mark, losing 0.12% on the day. The fact that today's economic docket won't be featuring any data that could impact the price in the short-term suggests that the pair is likely to continue its range movement towards the end of the week.

Technical outlook

1.1713 (Aug. 24, 2015, high) could be a tough resistance to break for the pair. A decisive move above that level could open the door for further gains towards 1.1790 (Jan. 15, 2015, high) and 1.1870 (Jan. 11, 2015, high). On the flip side, short-term supports could be seen at 1.1616 (former resistance), 1.1500 (psychological level) and 1.1450 (20-DMA).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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