• US dollar reverses late on Friday and turns negative.
  • US yields off highs following the Consumer Sentiment report.
  • EUR/USD is about to end the week with minor changes.

The EUR/USD rose from 0.9970 and climbed to 1.0035, hitting the highest level since Tuesday amid a reversal of the US dollar across the board following University of Michigan's Consumer Sentiment report.

On European hours, the EUR/USD hit the lowest level in a week under 0.9950 and a few hours later printed a multi-day high, driven by a weaker dollar, affected by UoM Consumer Sentiment. The main index rose to 59.2, below the 60 of market consensus. The key numbers were inflation expectations that dropped across the curve.

The key event ahead is the FOMC decision on Wednesday. A 75 basis points rate hike is expected. The decision, the dot plot and the tone of the Fed will likely determine the next direction of the EUR/USD.

"Narrative shattered  – US inflation is unrelenting, throwing the "Fed pivot" story up in the air and boosting the dollar. Europe's efforts to mitigate the energy crisis were insufficient to withstand the greenback's strength. All eyes are now on the world's most important central bank, with everything else playing second fiddle," said Yohay Elay, analyst at FXStreet.

EUR/USD weekly chart

The EUR/USD is about to end the week flat. The trend in the pair is clearly bearish, but so far, it has been able to remain above 0.9850/0.9900. If the euro manages to post a close above 1.0070, it could alleviate the negative pressure. The following level is the 1.0300 area that contains the 20-week moving average. On the flip side, support is located at 0.9910, followed by 0.9860 and 0.9730.

EURUSD weekly chart

Technical levels

EUR/USD

Overview
Today last price 1.0017
Today Daily Change 0.0017
Today Daily Change % 0.17
Today daily open 1
 
Trends
Daily SMA20 0.9989
Daily SMA50 1.0101
Daily SMA100 1.0323
Daily SMA200 1.0737
 
Levels
Previous Daily High 1.0018
Previous Daily Low 0.9956
Previous Weekly High 1.0114
Previous Weekly Low 0.9864
Previous Monthly High 1.0369
Previous Monthly Low 0.9901
Daily Fibonacci 38.2% 0.9994
Daily Fibonacci 61.8% 0.998
Daily Pivot Point S1 0.9965
Daily Pivot Point S2 0.9929
Daily Pivot Point S3 0.9903
Daily Pivot Point R1 1.0027
Daily Pivot Point R2 1.0053
Daily Pivot Point R3 1.0089

 

 

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