The euro-dollar pair rose during trading today, Friday, ending the decline that it recorded yesterday, during which it recorded its lowest level in a week, and the recovery of the euro levels comes in light of exploiting the weakness of the US data issued at the end of the week’s trading, which reduced the US dollar’s gains against most major currencies.
The euro-dollar fell yesterday, recording its lowest level this week at 1.0659, before resuming recovery during today's trading, after it found support from weak growth data and orders for durable goods from the US economy, which increased negative pressure on the US dollar against most major currencies to lose a large part From the gains he recorded during today's trading.
The euro-dollar trading witnessed stability during the last period in light of the stability of the economic data issued by the euro area and the improvement of data in the services and industrial sectors, which provides support for the euro.
On the other hand, we find that optimism increased in the financial markets after Donald Trump took more measures that confirmed his commitment to his election promises, which pushed investors to the stock markets significantly, which affected the demand for the euro and other major currencies, but the euro showed stability during the recent period, especially In light of the support it found from the weakness of the dollar.
Technical Outlook for the EURUSD
The euro-dollar pair is trading at the level of 1.0696, rising from the support level, after it failed to breach it, in conjunction with the presence of the Fibo line 23 on the four-hour time frame, as shown in the graphic
Over the course of the week, the EUR/USD pair failed to breach the resistance level at 1.0772, which prompted the price to rebound strongly towards the bearish trend again.
The trades are now taking place at the level of the average moving indicator line, and both the MACD and Stochastic indicators show a negative crossover towards the bearish trend on the four-hour time frame.
Therefore, the bearish trend is still dominant in the pair’s trading, which gives the price the opportunity to further decline to target the 1.6030 level and then the 1.6010 level in the near term.