Sideways EURUSD around 1.0370

• The euro trails most of the G10 space.
• The mixed dollar despite the rise in yields.
• EURUSD with no clear direction, unable to return above 1.0700.

EURUSD is trading a marginal gain on Friday trading around 1.0370. It hit an intraday low at 1.0341 and then climbed to a new high at 1.0395. The dollar is trading flat, with mixed results, while equity markets rise.

Calm down, no big data ahead

Most of the currency pairs on Friday move without big variations. This has its impact on the EURUSD, which since the Asian session has been moving sideways around 1.0370, facing resistance below 1.0400, and with support in the 1.0350 area. A consolidation above 1.0400 would give the euro strength to extend the gains, while below 1.0350, it would be left vulnerable, exposing 1.0300.

The DXY falls 0.15% to the 106.50 area, while Treasury yields rise on Friday although they have moved away from the highs. Wall Street futures and European markets trade with profits.

The president of the European Central Bank, Christine Lagarde said on Friday that she expects interest rates to rise further. She said that inflation in the Eurozone is very high. “The risk of a recession has increased,” said the official.

The economic calendar shows no impact data ahead. The most relevant will be the US existing home sales data. Operators will closely monitor what happens with the bond market and stock markets.

technical levels