- The dollar gains momentum and cuts weekly losses.
- EUR/USD still bullish in the short term, but with less momentum.
- Upcoming Economic Report: US Consumer Confidence for August.
The EUR/USD is trading in the daily low zone below 1.0290. The decline occurs before a general strengthening of the dollar in the European session. DXY is rising after four days of declines.
The dollar began to pick up momentum in the second half on Thursday, with Treasury bond yields rising. To which is added a lower appetite for risk in the equity markets.
With regard to data, the inflation figures for Spain were released, showing a downward revision from -0.2% to -0.3%. Another report showed an increase in industrial production in the Eurozone of 0.7% in June, above the 0.2% expected. The economic calendar shows ahead the preliminary consumer confidence data from the University of Michigan in the US for August.
The positive data of Eurozone, does not change the perspectives of a weak economy that is heading towards recession. Adding to the poor outlook, the energy crisis in the region continues to worsen.
technical landscape
EUR/USD is losing momentum after failing to hold above 1.0300, but still shows a short-term bullish bias. It still has the 1.0260/80 area left, which if it gives way could trigger further downside with the next target at 1.0245. The next support is seen at 1.0200.
If it manages to stay above 1.0270, the euro could rebound again. Resistance is located at 1.0325 followed by this week’s high zone at 1.0365 area.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
