EUR/USD sees choppy Friday, testing 1.06

The EUR/USD is catching some minor lift but mostly flat for Friday near 1.0600.
Broad market sentiment is seeing an improvement heading into the close, pushing down the US Dollar.
Next week to open quiet before a double-header PMI reading for both the EU and the US on Tuesday.

Joshua Gibson FXStreet

The EUR/USD kicked off Friday's trading session near 1.0586 and has been keeping in a tight range for most of the day, dipping into an early low of 1.0565 before catching a choppy lift into the 1.0600 handle.

The Euro (EUR) caught a lift higher on Thursday, pinging 1.0616 after dovish comments from Federal Reserve (Fed) Chairman Jerome Powell pushed down market expectations of a quicker rate cut cycle in the future.

Friday sees limited action as investors position themselves ahead of the weekend closing bell before next week rounds the corner into a dual Purchasing Manager Index (PMI) reading for both the EU and the US.

Before that, Euro traders will see Monday's latest EU Consumer Sentiment indicator, with October's reading forecast to decline from -17.8 to -18.2, and then Tuesday brings the latest round of EU HCOB PMIs for October, where investors are expecting the headline composite figure to tick upwards into 47.4 from 47.2.

Following that will be the US' S&P Global PMIs for October, with the services and manufacturing components are both expected to decrease slightly; the Services PMI is expected to slip from 49.8 to 49.5, while the manufacturing side is seen declining from 50.1 to 49.9.

EUR/USD Technical Outlook

The Euro is seeing some sideways momentum develop on the daily candlesticks, with the descending trendline from 1.1275 creating some rough chop on the charts, and topside pressure from the descending 50-day Simple Moving Average currently dropping through 1.0700. Bidders will have a difficult time getting past the last swing high into 1.0650 if momentum doesn't develop soon, and the 200-day SMA is rolling over into a bearish stance just north of 1.0800.

On the low side, the last swing low into 1.0450 represents the near-term floor, and a bearish continuation leaves the EUR/USD exposed to further downside into fresh lows for 2023, with the nearest technical support at last November's bottoms at 1.0222.

EUR/USD Daily Chart

EUR/USD Technical Levels

EUR/USD

Overview
Today last price	1.0593
Today Daily Change	0.0011
Today Daily Change %	0.10
Today daily open	1.0582

Trends
Daily SMA20	1.0556
Daily SMA50	1.0697
Daily SMA100	1.0827
Daily SMA200	1.082

Levels
Previous Daily High	1.0617
Previous Daily Low	1.0528
Previous Weekly High	1.064
Previous Weekly Low	1.0496
Previous Monthly High	1.0882
Previous Monthly Low	1.0488
Daily Fibonacci 38.2%	1.0583
Daily Fibonacci 61.8%	1.0562
Daily Pivot Point S1	1.0535
Daily Pivot Point S2	1.0487
Daily Pivot Point S3	1.0446
Daily Pivot Point R1	1.0624
Daily Pivot Point R2	1.0665
Daily Pivot Point R3	1.0712

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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