- The euro opened at a daily high during the US session on Friday, but remained sideways.
- EUR/USD continued to fluctuate around 1.1850 and could not confirm the levels below 1.1800 or above 1.1900.
EUR/USD is about to post small weekly gains hovering around 1.1850 at the end of Friday, but was unable to break the current consolidation phase. It recently climbed to a two-day high of 1.1870, but was unable to break higher.
The EURUSD ended the week with a strong no considering that it tested levels below 1.1750 on Thursday. Despite all the action, including the FOMC meeting, EUR/USD continues to trade sideways around current levels.
” This week ‘s FOMC meeting provided a potential catalyst for new momentum in the FX markets, but the outcome of the meeting hardly met expectations, so we see limited room for a renewed push to sell the dollar. This suggests that this consolidation period will continue in the near term”, explained analysts at MUFG Bank. They continue to believe that EUR/USD is in consolidation mode and will remain in a range of 1.1600-1.2000 in the coming months.
EUR/USD technical outlook
Valeria Bednarik, Chief Analyst at FXStreet , notes that the EUR/USD weekly chart continues to develop well above all moving averages, with the 20 SMA maintaining a bullish slope above the larger averages.” Tech. targets .” At the same time, stable on a good basis, indicating no interest in the dollar”. She noted that the daily chart maintains a neutral stance.
“The immediate support level is 1.1790, followed by the August monthly low of 1.1695.However, the dollar remains out of favor and a fall towards this last seems unlikely. If that happens, strong buying interest could re-emerge near it. On the other hand, resistance is at 1.1915 and 1.2011, this year’s highs”, Bednarik added.