- EUR/USD sideways during the week, bearish on Friday.
- The dollar strengthens amid risk aversion.
- The euro finds support after a report shows the ECB closing in on a 2022 rate hike.
The EUR/USD it extended the decline during the US session and hit a fresh low around 1.1325. The pair remains under pressure as the US dollar gains momentum across the board. The euro trimmed losses after a report mentioned that European Central Bank officials are leaning towards raising rates in 2022 and began discussing an end to QE.
Fears before the weekend
Caution prevails in financial markets ahead of the weekend. After the worst day since November, the Dow Jones fell 0.15% this Friday. Risk-off sentiment is pushing the dollar higher across the board.
EUR/USD is about to end the week sideways around 1.1330, after being capped higher at 1.1400 and at the same time rejected below 1.1300. The short-term bias looks neutral. Euro needs to break and hold 1.1400 to gain strength, while a firm drop below 1.1270 should point to more losses.
Next week, attention will remain on the border with Ukraine. In terms of data, February flash PMIs will be released for the Eurozone and the US The other key report in the US will be the PCE. Inflation figures could have a significant impact on Fed rate hike expectations.
Technical levels
Source: Fx Street
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