- The US dollar picks up and pulls back during the American session, moving in no clear direction.
- EURUSD rises on the week, far from the top.
- The 200-day SMA at 1.0415 is the key to go higher.
The EURUSD it fell during the American session to 1.0325 and then quickly rallied back to the 1.0350 area, in a quiet session in the currency markets. The dollar rallied amid a deterioration in market sentiment that did not last long.
a quiet friday
The dollar gained momentum during the American session, as US stocks pared their losses and the price of oil fell. The volatility in the foreign exchange market remained limited, with prices not far removed from the previous daily close.
Economic data released on Friday showed US home sales fell for the ninth straight month in October. The annual rate fell from 4.71M to 4.43M, above the 4.38M market consensus. The figures had no impact on the markets. The DXY is posting modest weekly gains after more signs of slowing inflation and better than expected retail sales numbers.
Next week the FOMC Minutes will be released on Tuesday. The US Markets will not open on Thursday due to Thanksgiving. The preliminary PMIs for November will be released on Wednesday. On Thursday, the European Central Bank will publish the minutes of its last meeting.
A not so positive week for the EUR
EURUSD is about to end the week with small gains and far from the top. It peaked at 1.0480 on Tuesday, the highest level since July 1, and then pulled back sharply. The recovery of the euro was limited by the 200 SMA (currently at 1.0415) and fell back to 1.0303.
“The EURUSD pair has lost its long-term bullish momentum, but not all is said yet. The weekly chart shows that EURUSD held at the upper end of the range from the previous week, while hitting a higher high. Average 20 SMA is flat around 1.0030, just above a critical Fibonacci level, the 61.8% retracement of November’s rally around parity. SMA of 200, both gaining bearish traction well above the current level, which is not a good sign for euro bulls,” says Valeria Bednarik, chief analyst on the latest report.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
