- Stronger US Dollar pushes EUR/USD to the downside.
- Pair heads for a weekly loss, still holding near 1.2300
EUR/USD dropped further during the US session and reached a 2-week low at 1.2258. It rebound afterwards but remained under 1.2300.
Today’s slide pushed the price below the level it had a week ago. The euro is headed toward the second weekly loss in-a-row. It is a minor decline as the pair continues to move sideways near the 1.2300, without a clear direction.
The US dollar gained momentum on Friday on the back of better-than-expected readings on US Industrial Production, JOLTs Job Openings, and Consumer Sentiment data that offset reports on the housing sector. Also, higher US yields added support to the greenback.
Market participants now turn its attention to next week FOMC meeting. The Fed is expected to hike the Fed Funds rate. Economic projections and Jerome Powell first post-meeting press conference will also be relevant for markets. In the Eurozone, the key report will be the flash PMI.
Levels to watch
EUR/USD is moving sideways, consolidating near the 1.2300 region. It is about to post the fourth consecutive weekly close very close to that area.
To the upside, a key level is seen at a downtrend line from 2008 highs that stands around 1.2480. A break higher could open the doors to more gain in the medium-term. On the flip side, a close significantly below 1.2200 could point toward a bearish correction. The next strong support might lie at 1.2060/80.