The euro was down against the US Dollar on Friday. EUR/USD is at 1.1250, shedding 0.58%. The support is now located at the level of 1.1246, the low of Friday’s trading, and resistance is likely to make the level of 1.1416 - the maximum of Thursday.
The dollar ended the week with a sharp rise against other major currencies, despite the Federal Reserve this summer lowered expectations of growth rates. On Friday, the USD index, showing the US dollar against a basket of major currencies, rose 0.65%. The index finished the week higher by 0.56%. On Friday, the EUR/USD pair finished trading at 1.1251, jumped 0.57% on the day, but losses for the week amounted to 1.02%.
Giving a forecast for the EUR/USD pair for the next month, the majority of experts (80%) insist on lowering the pair at least to the level of 1.1100. As a result, after ECB President Mario Draghi’s speach, the pair really started to move south and graduated from a week in the middle between the support levels 1.1283 and 1.1200, designated on the basis of graphical data analysis.
The sentiment on the dollar remained fragile as markets revised expectations for the timing of the next rate hike the central bank of the United States after on Friday data showed the smallest increase in the number of employees since September 2010.
In addition, on Monday, Federal Reserve Chairman Janet Yellen said the US central bank does not intend to raise interest rates, while keeping the uncertain economic outlook in the United States. Yellen also expects, that the US recovery will continue, but did not specify the possible timing of the next rate hike.
The pair probably consolidate in ranges prior to the UK referendum. Only 10 days to go, get ready for significant levels of high volatility.
The euro marked a decline against the US dollar for a second day in a row on Friday. EUR/USD lost 62 pips to a closing price of 1.1252. The pair broke the first resistance at 1.1286. Next bears target is the first support at 1.1100. On the upside, the resistance is located at 1.1286.
EUR/USD tried to make upward movement last week, topped at 1.1414 but failed to keep the momentum, fell down and closed lower at 1.1252. Trade signals are low for testing the lower line of the bullish channel localized in the region of 1.1130. Immediate resistance is at 1.1285. A clear break below that area should lead the price to neutral trading zone testing 1.1320.
Important news will keep under pressure the participants in the Forex market next week. Decisions on interest rates in the US and the UK are the main topics that will monitor market participants. Concerns about Brexit will also influence their actions.
Key levels to watch for today:
Support: 1.1100;
Resistance: 1.1286; 1.1450; 1.1630.
The EURUSD stays consolidated between the 1.1200 zone as support and the 1.1300 zone as resistance, but today’s direction seems more bullish.
On Monday, the dollar is stable at one-week high against other major currencies, as investors remain cautious ahead of the monthly meeting for the monetary policy of the Federal Reserve System, which will be held this week. The EUR/USD gained 0.12% to 1.1264. USD Index, which tracks the US currency against a basket of six major rivals, is stable in the region of one-week high 94.59.
EUR/USD: correction to 1.1285 is expected. Intraday outlook: low - 1.1232, high - 1.1285, closing - 1.1265.
The price is below the middle line of Bollinger bands borders, below 5 EMA and EMA 13. RSI turns up. Stochastics come out of the oversold zone. MACD is below zero and demonstrates attenuation loss. Indicators confirm each other. I would sell the pair to rise from 1.1280-1.1300 with the prospect of its fall to 1.1140.
I agree, the move to the upside will likely reach 1.1300. The tight range continues, unfortunately. Let’s hope the referendum in the UK will end it eventually.
The pair is struggling to make any significant movement, consolidation could possibly continue before the Fed and the Brexit.
The single currency was trading elevated against the US Dollar on Monday. The session started at 1.1250, the pair broke the resistance at 1.1286 and the session closed at 1.1290. Next bulls target is the resistance located ta 1.1450. Support is now located at 1.1286.
EUR/USD is back to testing 1.1200. A breakout below that level will lead to a further drop to 1.1140 - 1.1130.
On Tuesday, the single currency recorded a significant loss against the US dollar. The session started at 1.1290 and closed 86 pips lower. After steady downtrend the pair broke through the first support at 1.1286. Next support is located at 1.1100 and the resitance now is located at 1.1286.
EUR/USD has risen with only about 40 pips all day because everyone are waiting for the FOMC statement which is coming out in less than two hours.
The pair has been rejected from 1.13 level despite Fed decision to stay on hold at its June meeting and back to the range.