- Dollar strength pushes EUR / USD lower.
- Quote finds support above the 20-day moving average.
The EUR / USD extended the slide and made new three-day highs at 1.2096, after which it bounced back towards 1.2105. For the moment, the euro has avoided confirming below 1.2100, although the bias remains to the downside.
The strength of the dollar explains the movements in the first half of Friday. The Dollar index (DXY) rises 0.22% and operates at 90.60, also a maximum in three days. The modest drop in stocks may be behind the momentum of the greenback.
Hopefully, the attention will focus in the next few hours on what happens in Wall Street. With regard to data, the US consumer confidence report from the University of Michigan stands out. New York Federal Reserve Chairman John Williams will speak publicly at the New York Economic Club.
Between two moving averages
From a technical point of view, short-term pressures continue to point to the downside in the short term, although holding above 1.2100 keeps the downs under control. A return above 1.2120 could modify the intraday bias to the upside.
The slide is testing not only 1.2100, but also the 20-day moving average. A close below would possibly point to more weakness. In turn, the rises face resistance in the week around 1.2140 / 50, the 55-day average passes there and a close clearly above it would be a favorable event for an advance of the euro.
Technical levels
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