EUR/USD inching closer to Thursday's one-month high

Haresh Menghani FXStreet

The greenback remained shaky on Friday, with the EUR/USD pair extending its recovery move from Tuesday's weekly low and move back above 50-day SMA.

Currently trading around mid-1.0600s, a fresh wave of greenback selling pressure, with the key US Dollar Index sinking back closer to 101.00 handle, is seen assisting the pair to maintain its bid tone for the third consecutive session, near one-month high.

Market ignored the Fed Chair Janet Yellen's hawkish near-term outlook for the US economy and Donald Trump's failure to provide details of his economic policies continues to fuel long-dollar unwinding trade, positioning the major to head for fourth consecutive weekly gains.

Investors now look forward to US economic docket, featuring the release of monthly retail sales, PPI print and Prelim UoM Consumer Sentiment index for January, in order to grab short-term trading opportunities and some immediate respite for the greenback.

Technical levels to watch

Immediate upside resistance is pegged near 1.0685 (yesterday's high) above which the pair seems all set to surpass 1.0700 handle and head towards its next resistance near 1.0715-20 region.

On the downside, previous resistance near 1.0620 level now seems to act as immediate support, which if broken is likely to drag the pair back below 1.0600 handle, towards its next support near 1.0580-75 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0552

25% Bullish
58% Bearish
17% Sideways

Bias Bearish

1 Month

Avg Forecast 1.0433

25% Bullish
75% Bearish
0% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.0311

6% Bullish
69% Bearish
25% Sideways

Bias Bearish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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