- Euro on track to have the best week since August against the dollar.
- EUR / USD continues with the rises limited by the 1.1350 area.
The EUR / USD is trading without significant variations on Friday, in a day characterized by low volume and little volatility. The pair climbed to 1.1343, the highest level in a week and remains close to that level.
The recent gains in equity markets continue to play against the dollar, which presents mixed results on Friday, and mostly negative for the week. Thursday’s data from the US did not have a major impact on the market, although it boosted Treasury yields, which is a factor that limited the negative tone of the greenback.
Volatility on Friday is low, with most of the stock exchanges closed. With no impact data ahead, hours of small tours are expected, with an increase in spreads. That is, with unfavorable conditions for operators.
Securing weekly profit
EUR / USD’s 100 pip rise from a week ago is enough to make it the most significant weekly rise since August and could be the highest close since early November. But, the fact of doing it still within the range that has already been several weeks and also below 1.1350 puts some doubts about the near future.
To the upside, EUR / USD faces stiff resistance around 1.1350 / 60. If this barrier is broken, an upward extension could be expected, with a possible initial target of 1.1400. An upward bias would thus be reinforced.
Strong support is at the 1.1220 to 1.1250 area. If the euro loses that band of contention, a test of the year low at 1.1185 would be expected, without ruling out a faster and deeper decline, with the next significant support being at 1.1110.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.