- EUR / USD continues to press a critical support area on Friday.
- The US dollar is mixed on Friday and during the week leading up to the FOMC meeting.
The EUR/USD it is still unable to make a sustained recovery and continues to press the 1.1750 area. After hitting 1.1780, the pair fell back to the daily low at 1.1752. The euro is about to end the week under pressure and looking vulnerable, but so far still above critical short-term support.
It has been a quiet Friday for the EUR / USD so far, unaffected by either the US data or the comments and rumors about the European Central Bank. European PMIs beat expectations and were mixed in the US, but price action remained limited.
Next week, many economic reports are expected from the euro zone, however the key event will be the meeting of the Federal Reserve. “The dollar should continue to trade smoothly until the FOMC meeting on Wednesday. Despite concerns about the lockdown in other parts of the world driven by the Delta variant, we expect the Fed to grapple with the realities of above-trend growth and inflation. While it may not specify exactly when it is ready to cut, the tone should generally support the view that tapering should emerge in the fourth quarter of this year, with the possibility of a first rise in the fourth quarter of 22 “Said ING analysts.
Lowest weekly close in months
EUR / USD is about to post the second consecutive weekly decline and the second lowest since October last year. Weekly technical readings indicate that there is room for further falls. The pair has posted a lower low for the fourth consecutive week, as well as lower highs. The 20 SMA gains a bearish momentum well above the current level, while the technical indicators maintain their strong bearish slopes within negative levels, “he explained. Valeria Bednarik, FXStreet Analyst.
According to Bednarik, EUR / USD is bearish and ready to complete a 100% retracement of its March / May rally and hit 1.1703. “Furthermore, the pair is developing within a descending channel coming from the June 25 high of 1.1974.”
Technical levels
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