On Thursday session the single currency recorded an increase against the US Dollar. The session started at 1.0658 and ended 74 pips higher. The bulls prevailed and the first resistance at 1.0676 was broken. Expecting further increase of the euro and a break of next resistance at 1.0854.
The euro recorded a decline against the dollar on Friday. The single currency completely lost the lead from the previous session and thus the pair moved to the support at 1.0613. Considering that short-term indicators are still in favor of the dollar, the probability to break the key level remains high. The session on Friday started at 1.0732 as from the beginning the bearish trend was leading . Bottom of the day was hit at 1.0640, and the session ended with only 4 pips higher.
In my opinion, this week, the dollar will likely trade in a range against other major currencies, in expectation of the meetings of the Federal Reserve and the European Central Bank next month.
The single currency recorded a dynamic session against the dollar on Monday. The pair remained at the lower levels reached last week, but thanks to volatile trading all the time, support at 1.0613 was broken. Currencies, however finished above the key level and short-term expectations are in favor of the euro. Monday session started at a price of 1.0638 finished 3 pips below. The difference between the lowest and highest value for the day was 63 pips.
The euro registered a slight increase against the dollar on Tuesday. The session was calm with no significant changes in the price. Short-term expectations remain in favor of the single currency. In this case the resistance at 1.0780 is threatened. The sessions started at 1.0635 and initially bulls prevailed. After being marked a peak at 1.0672, the price went through a correction and the final was set to level 1.0642.
The euro is losing ground against the dollar on Wednesday. The single currency did not meet the positive expectations and recorded a decrease against the dollar. As a result, the support at 1.0568 was pierced after reaching a bottom for the day at 1.0566. Subsequently, however, the losses were partially restored and the currencies finished at 1.0623. If bearish sentiment continue, the pair will test the support at 1.0517.
The single currency recorded neutral session against the dollar on Thursday. Trading was extremely quiet, as the opening price was similar to the closing, respectively, 1.0623 and 1.0609. In the early hours bears prevailed, but later losses were compensated. So the difference between the highest and lowest value for the day was 27 pips. If negative sentiment continue, we may expect break of support level at 1.0565.
On Friday session the single currency didn;t mark any significant change against the dollar. The euro ended the session at 1.0598, which technically was the third consecutive negative performance and led EUR/USD to the red territory for the week. Current attitudes remain negative, but a break of the support at 1.0520 will give a chance for testing levels at 1.0460. Very imporatnat fundamentals this week will influence the pair – the meeting of the ECB and labor market data from the US.
The forex strategists of Barclays Capital advised investors this week to consider sales of EUR/USD. From a technical point of view, from Barclays Capital provides EUR/USD to move towards 1.0460.
On Monday session EUR/USD continued the negative performance for the fourth consecutive day. Ahead of the ECB meeting and expected further monetary stimulus, the euro fell by 25 pips and closed at 1.0563. During the whole session the single currency couldn’t break the key level at 1.0600. The sentiment is still negative and potential break of 1.0460 will intensify the bears presence.
On Tuesday session the euro interrupted a four-day negative series and added nearly 70 pips against the dollar to a closing price of 1.0631. The trading passed within the extreme values 1.0636 and 1.0562. Relative strength index moved to positive territory, but the recent downward trend is still in force. Consecutive break of 1.0650 and the psychological level at 1.0690 will contribute to positive attitudes. The upcoming inflation data in the euro area and Yellen's comments will prove to be a key indicator for the pair.
