EUR/USD recovers from 1-week low and erases daily losses

  • EUR/USD holds firm to session gains after Fed’s monetary policy report.
  • Euro trims weekly losses against US dollar, back above 20-day moving average

The EUR/USD pair recovered ground after the beginning of the American session rising from 1.1612, 1-week low, to 1.1670, slightly below daily highs. The pair remained above 1.1650 after the release of the Federal Reserve monetary policy report that Powell will present next week to Congress.

According to the document, prospective economic conditions call for further gradual removal of monetary policy accommodation. The report had no significant impact on the US dollar as it added no new information.ç

Despite recovering against the US dollar, the euro turned lower versus the pound. The slide of EUR/GBP could have limited the upside in EUR/USD.

On a weekly basis, the pair is about to post the first slide after rising during the previous there weeks. Overall, it continues to move within the 1.1800 - 1.1500 wide range.

Technical levels

EUR/USD rose back above the 20-day moving average that stands at 1.1650 and is again a support level to consider. The recovery above that line could signal some short-term exhaustion to the downside. A daily close below 1.1630 would weaken the outlook for the euro.

On the upside, immediate resistance is seen at 1.1670, followed by 1.1695 (20 and 55 MA in 4-hour charts) and 1.1730.

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