EUR/USD Price Analysis: Pulls back from session highs, 50-hour SMA is key support

EUR/USD retreats from the session high of 1.1320 to 1.1304.
The 50-hour SMA is the level to beat for the sellers.

Omkar Godbole FXStreet Contributor

While EUR/USD has pulled back from session highs near 1.1320, it is still trading above the 50-hour simple moving average (SMA) support, currently at 1.1294.

The pair charted higher lows along the 50-hour SMA throughout the rally from the May 27 low near 1.10 to Friday's high of 1.1384. To put it another way, the technical line has consistently reversed pullbacks over the last week or so. Hence, it is the level to watch out for over the next few hours.

Acceptance below the 50-hour SMA at 1.1294 could cause some buyers to exit the market, leading to a deeper decline toward 1.1250.

A break below the 50-hour SMA may be seen. as the long upper shadow attached to Friday's candle and an above-70 reading on the 14-day relative strength index is reflective of buyer fatigue.

At press time, the pair is trading near 1.1304. A bounce from the 50-hour SMA would put 1.14 back on the table.

Hourly chart

Trend: Bearish below 50-hour SMA

Technical levels

1. R3 1.1462
2. R2 1.1423
3. R1 1.1357
PP 1.1318
1. S1 1.1252
2. S2 1.1213
3. S3 1.1147

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD struggles to build on recent rebound, holds above 1.1550

EUR/USD trades marginally lower on the day but holds above 1.1550 in the American session, following Thursday's rebound. The pair holds near its intraday high as the US Dollar remains pressured by hopes the Middle East conflict will soon come to an end.

GBP/USD hovers around 1.3400 as investors await war clarity

GBP/USD remains near its daily open, not far from 1.3400, in the second half of Friday's session. The US Dollar lost its previous intraday strength and weakens as investors await clarity on the US-Iran war.

Gold stabilizes above $4,200 as wait-and-see continues

After rising more than 3% on Thursday, Gold (XAU/USD) stabilized around the $4,200 mark in the American session on Friday. The US dollar seesaws between gains and losses, but remains within familiar levels as investors remain skeptical yet hopeful about a resolution to the Middle East conflict.

Crypto Today: Bitcoin, Ethereum, XRP recovery slows amid incessant capital outflows

The cryptocurrency remains in a broader corrective bias on Friday, despite majors such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) holding slightly higher than early-week support levels.

SpaceX launches 24% higher at Friday debut

Space Exploration Technologies (SPCX), aka SpaceX, zoomed 24% higher soon after the start of its first IPO trading day on Friday. Shares of the rocket and artificial intelligence (AI) company founded by Elon Musk began trading at about 11:46 am EST and quickly gained speed.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.