- Euro cuts weekly gains against the dollar on Friday.
- EUR / USD remains around the 200-wheel average.
The EUR / USD is retreating on Friday after hitting multi-day highs the previous day at 1.1927. The price is trading at the lows of the day in the 1.1880 zone. The setback occurs before a recovery of the greenback throughout the market.
The dollar is among the best performing currencies on Friday, with moderate gains. The momentum comes on the side of a rise in Treasury yields, which have bounced from lows in more than a week. The 10-year rate is at 1.67%, very close to the highs of the last two days.
Talking about data will be released in the US the inflation report for March and the wholesale inventories report. Among the speeches, only that of Robert Kaplan of the Dallas Fed stands out.
In the Eurozone, an unexpected drop in German industrial production of 1.6% was known in February, against the expectation of a rise of 1.5%. Analysts at TD Securities say production is on track to contract 1.5% in the first quarter, but warn “that the prospects for the second quarter look much better for the German manufacturing sector after the PMI reached a record high in March, evidence that greater foreign demand is supporting manufacturing activity throughout Europe ”.
Technical overview
Recovery from minimum in months of EUR / USD has lost steam on Friday, but is still standing. Difficulty holding above 1.1900 may anticipate difficulties ahead or favor consolidation, before directional runs.
The price is in the area of the important 200-day moving average. If it affirms well above, the euro could gain more moment, while if it affirms below, a test at 1.1800 would be expected.
For the next few hours, at 1.1875, where the 20 moving average is in four hours, it is a support to take into account. On the upside, the euro will regain intraday strength from rising above 1.1905 where the 20-hour average is.
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