- Strong fall of the dollar in the market at the end of the week.
- Wall Street futures rise around 1%.
- EUR/USD tests levels above 1.0100.
EUR/USD is rising on Friday, on the back of a broad decline in the US dollar. The pair climbed to 1.0112, reaching the highest level since August 18. It is trading around 1.0090, still with a bullish tone.
If the rallies extend, the next relevant resistance can be seen at the 1.0145 area, followed by 1.0200. In the opposite direction, 1.0055 offers the first support followed by 1.0010. A return below 0.9975 would put the bullish moment behind us and put the spotlight on 0.9900.
It’s the dollar, not the ECB
ANDhe main fuel for the rise in EUR/USD on Friday is being dollar weakness. The greenback is in negative territory this week, according to analysts, it may be in anticipation of next week’s inflation data that could give signs that US inflation has already reached a peak. The Dollar Index (DXY) is at the 108.50 zone, down more than 1% extending the retracement from the decade high at 110.80.
Thursday the European Central Bank raised benchmark interest rates by 75 basis points, the largest hike in its history. It moved in line with expectations and the impact was limited. The common currency lost steam after the ECB events.
The President of the ECB, Christine Lagarde She has just given a speech in which she stated that the main mission of the central bank is price stability and she was determined to achieve that goal. She added that the ECB is ready to give liquidity to banks, not energy companies. The words came as no surprise after Thursday’s events.
In the days after the ECB meetings, news usually appears with rumors and speculation about the next steps. If it occurs, this can generate noise in the market.
EUR/CHF is falling for the second day in a row, trading below 0.9650, eyeing August lows. For its part, the EUR/GBP trades sideways near 0.8700 and the 2022 high.
|Last Price Today||1.0084|
|Today’s Daily Change||0.0087|
|Today’s Daily Change %||0.87|
|Today’s Daily Opening||0.9997|
|20 Daily SMA||1.0026|
|50 Daily SMA||1.0128|
|100 Daily SMA||1.0354|
|200 Daily SMA||1.0769|
|Previous Daily High||1,003|
|Previous Daily Minimum||0.9931|
|Previous Maximum Weekly||1.0079|
|Previous Weekly Minimum||0.9911|
|Monthly Prior Maximum||1.0369|
|Previous Monthly Minimum||0.9901|
|Daily Fibonacci 38.2%||0.9969|
|Daily Fibonacci 61.8%||0.9992|
|Daily Pivot Point S1||0.9941|
|Daily Pivot Point S2||0.9886|
|Daily Pivot Point S3||0.9842|
|Daily Pivot Point R1||1.0041|
|Daily Pivot Point R2||1.0085|
|Daily Pivot Point R3||1,014|
Source: Fx Street