- The dollar prolongs the weakness after the personal income and expense report.
- EUR / USD is holding on to weekly gains, regaining some of the ground lost in the previous one.
The EUR / USD rose to 1.1965 following the release of the US personal income and spending report for May. The data did not generate much surprise but served to give a new push to the bottom of the greenback throughout the market.
The data showed that the underlying index of personal consumption spending rose to 3.4%, the highest level since 1991. The data, however, did not generate surprise since such an increase was expected. Later on Friday it will be the turn of the final consumer confidence report from the University of Michigan. In addition, several speeches are expected from the presidents of regional banks of the Federal Reserve.
The greenback is losing ground on all fronts, despite the stability in the bond market, and in the face of a rise in the equity markets. In this way, he continues to erase part of the strong gains he had obtained in the previous week.
The DXY loses 0.25% and operates at 90.60, resuming the losses, after a few sessions of pause. The index appears to be heading to test the zone of the weekly low at 90.50.
EUR / USD with an eye on the highest weeks
The EUR / USD to extend the rally will face 1.1970, where it is the high of the week. In case of breaking, the next strong barrier can be seen around 1.1995 / 1.2005. A confirmation on this last zone would leave the euro strengthened.
The 1.1945 area is now the first possible support. Below is a more relevant one at 1.1920, which if broken, would leave the road ready for 1.1880.
On the week chart, EUR / USD shows a recovery after the previous slide. This is a good sign for the euro, but it is still too early to tell if it is an upward correction before lower lows, or the start of a rally.
Technical levels
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